1. Recipe for Industrialization
1. Capital (wealth)
2. Powerful Navy
3. Railroads
4. Colonies
5. Technology
6. Growing Population
7. Raw Materials
8. Markets
9. Freedom from foreign invasion
10. Pro-Business Environment

2. Capital (wealth) Means of production Wealth Land Labor Machinery
Raw Materials
Wealth
Willingness to invest
Ability to invest
Monetarily
Governmentally

3. Powerful Navy Must protect trade routes
Raw materials coming into mother country
Finished products going to market
Any disruption in trade can plunge the country into economic ruin

4. Railroads
Necessary to have a reliable/elaborate/efficient transportation system taking goods/raw materials to markets and factories

5. Colonie$ Source of markets to buy finished goods
Source of raw materials to manufacture finished goods

6. Technology Science applied to Business
Steam power, Electricity, Iron/steel, railroads
must have the intelligencia to apply science to business

7. Growing Population Source of cheap Labor for factory system
If population is not growing, labor is not cheap

8. Raw Materials Natural resources to produce finished goods
Wood, iron ore, coal, cotton, wool, etc.
If not in mother country, must be imported from colonies
more expensive

9. Markets
Places to exchange finished goods for raw materials or other needed finished goods
Usually colonies

10. Freedom from Foreign Invasion
Industry is sensitive
must have a stable home environment in order to survive

11. Pro-Business Environment
Government must be sensitive to the needs of industry
provide laws that allow private enterprise/investment of wealth
Less restrictive: limited taxes on investment
Laissez Faire

12. Where does Industrialization Begin? Why?
Britain
All the ingredients for industrialization existed in Britain
Capital: aristocracy and middle class had wealth for investment
Powerful Navy: most powerful in the world to protect trade
Transportation system: Railroads
Colonies for raw materials and markets for finished goods
Growing population that was needed for cheap labor supply.
Government was pro-business: Lassez-Faire

13. Secondary: Manufacturing
Types of Industry
Tertiary: Service
Secondary: Manufacturing
Primary: Agriculture