Economic growth and development - Cartels and trusts Flashcards
What was the foundation of the industrial economy?
Joint-Stock capitalism.
What is joint-stock capitalism?
The development of larger economic units by businessmen who joined forces to form corporations.
What were corporations?
Commercial enterprises that were bigger than family firms and able to raise huge funds through investment and loans.
What did the investors hold?
Stocks and shares so that costs, losses and profits could be shared.
What was the Bull and Bear Market?
Bull = share prices rising and business confidence high Bear = share prices falling and business confidence low
What were monopolies?
The merged enterprises which joined together to raise more capital (money for investment) to gain access to wider markets, and to out-muscle competitors.
What was Cartelisation?
The process by which trusts and combinations formed cartels able to dominate markets and squeeze competitors out of business.
What was the protective tariff?
Business persuading government to impose high customs duties (tariffs) on imports to make them more expensive, and so ‘protect’ producers from cheaper competition.
Describe ‘Robber barons’
The derogatory term used to describe the super-rich individuals who controlled big business.
What was the Antitrust legislation?
Action demanded by those who wanted the government to regulate big business trusts to break up monopolies and to enforce fair competition.
