1. KC 5.1: Industrialization & Global Capitalism
Period 5:

3. Industrialization fundamentally changed how goods were produced

4. Factors that led to the rise of INDUSTRIAL PRODUCTION:
Europe’s location on the Atlantic Ocean
Geographical distribution of COAL, IRON, & TIMBER
European Demographic changes:
Europe’s population in 1700 = 100 million
Europe’s population in 1900 = 400 million
It DOUBLED every 60 years

5. Factors that led to the rise of INDUSTRIAL PRODUCTION:
Urbanization
Improved Agricultural Productivity:
Crop Rotation
Seed Drill
Improved Ploughs
Enclosure Movement
Selective Breeding
National Agricultural Market
Land Conversion
Abundant Waterways
New Fertilizers
Legal protection of PRIVATE PROPERTY

6. Factors that led to the rise of INDUSTRIAL PRODUCTION:
Abundance of RIVERS & CANALS
Access to FOREIGN RESOURCES
Europe controlled approx 40% of Earth’s population
Accumulation of CAPITAL
200 years of colonialism led to $$$$$$$$

7. Development of Machines
Steam Engine
Internal Combustion Engine
Made it possible to exploit vast new resources of energy stored in fossil fuels
Coal & Oil
The “fossil fuels” revolution greatly increased energy available to human societies

8. The DEVELOPMENT OF THE FACTORY SYSTEM concentrated labor in a single location and led to an increasing degree of specialization of labor

9. As new methods of industrial production became more common in parts of northwestern Europe, they spread to other parts of EUROPE, the U.S., RUSSIA, & JAPAN

10. The “SECOND INDUSTRIAL REVOLUTION” led to new methods in the production of steel, chemicals, electricity, & precision machinery during the second half of the 19th Century

11. New patterns of global trade & production developed & further integrated the global economy as industrialists sought raw materials & new markets for the increasing amount & array of goods produced in their factories

12. The need for raw materials for the factories & increased food supplies for the growing population in urban centers led to the growth of export economies around the world that specialized in producing SINGLE NATURAL RESOURCES:
Cotton, rubber, palm oil, sugar, wheat, meat, guano, metals, minerals
The profits from these raw materials were used to purchase FINISHED GOODS

13. The rapid development of industrial production contributed to the decline of economically productive, agriculturally based economies (ex: Textile Industry in India)

14. The rapid increases in productivity caused by industrial production encouraged INDUSTRIALIZED STATES to seek out new CONSUMER MARKETS for their finished goods
British & French attempts to “open up” Chinese markets during the 19th Century

15. The need for specialized and limited metals for industrial production, as well as the global demand for gold, silver, & diamonds as forms of wealth led to the development of EXTENSIVE MINING CENTERS
Copper in Mexico
Gold & Diamonds in South Africa

16. To facilitate investments at all levels of industrial production, financiers developed and expanded various financial institutions

17. The ideological inspiration for economic changes lies in the development of capitalism and classical liberalism associated with ADAM SMITH & JOHN STUART MILL

18. Financial instruments expanded
Stock markets
Insurance
Gold Standard
Limited Liability Corporations

19. The global nature of trade & production contributed to the proliferation of LARGE- SCALE TRANSNATIONAL BUSINESSES
United Fruit Company
The HSBC- Hong Kong & Shanghai Banking Corporation

20. There were major developments in transportation & communication: RAILROADS STEAMSHIPS TELEGRAPHS CANALS

21. The development & spread of GLOBAL CAPITALISM led to a variety of responses

22. In industrialized states, many workers organized themselves to improve working conditions, limit hours, & gain higher wages
While others opposed capitalist exploitation of workers by promoting ALTERATIVE VISIONS of society:
Utopian Socialism
Marxism
Anarchism

23. In Qing China & the Ottoman Empire, some members of the government resisted economic change & attempted to maintain preindustrial forms of economic production

24. In a small number of states, governments promoted their own state-sponsored visions of industrialization:
Economic reforms of Meiji Japan
Developments of factories & railroads in Czarist Russia
China’s Self-Strengthening Movement
Muhammad Ali’s development of cotton textile industry in Egypt

25. In response to criticisms of industrial global capitalism, some governments mitigated the negative effects of industrial capitalism by promoting various types of reforms:
State pensions & public health in Germany
Expansion of suffrage in Britain
Public Education

26. The ways in which people organized themselves into societies also underwent significant transformations in industrialized states due to the fundamental restructuring of the global economy

27. New social classes, including the MIDDLE CLASS & INDUSTRIAL WORKING CLASS developed

28. Family dynamics, gender roles, & demographics changed in response to industrialization

29. RAPID URBANIZATION that accompanied global capitalism often led to unsanitary conditions, as well as to new forms of community