History (week2) Flashcards
What were fairs and their role in medieval Europe and Asia?
Fairs were temporary gatherings and important mechanisms for trade and commerce. They involved circuits, had sophisticated institutions, but limited opportunities for growth and expansion.
What innovation in accounting is mentioned in the notes, and why is it important?
Innovations in accounting, including the use of double-entry bookkeeping, allowed for the growth of large organizations, salaried employees, and efficient coordination and diversification.
What are chartered trading companies, and can you name some examples?
Chartered trading companies were large enterprises focused on international trade with specific regions of the world. Examples include the East India Company, Dutch East India Company, and Hudson’s Bay Company.
How did the East India Company evolve from a trading company to a major political and military power?
By the 1760s, the East India Company had become a major political and military power, acquiring the right to collect taxes and capturing the Mughal capital, Delhi.
Who is Alfred D. Chandler, and what are some key developments he pointed out in the late 19th century in the US?
Alfred D. Chandler highlighted key developments in the late 19th century in the US, including new technologies, wider geographical markets, and the rise of mass production, management, and marketing/distribution.
What is the “visible hand” concept according to Chandler, and how does it contrast with traditional entrepreneurship?
Chandler’s “visible hand” theory emphasizes professional managers over entrepreneurs, arguing that managers, rather than markets, coordinate and control economic activities.
How durable are large corporations, and what might matter more than managerial control?
Large corporations are not as durable as we might think. Only a small percentage of firms listed in the Fortune 500 in 1955 were still there in 2019. The entrepreneurial spirit may matter more than managerial control.
What are the key innovations that have shaped firms, as mentioned in the notes?
Key innovations that have shaped firms include systems of ownership (joint stock, limited liability) and systems of control (accounting, professionalized management).
