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American Studies

American Studies. Business Consolidation 1875-1900. Video in Media Folder American 07/08. Is he right?. Gordon Gecko is a fictitious character who used his wealth and power to merge his company with others. Where would he fall of the economic spectrum?.

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American Studies

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  1. American Studies Business Consolidation 1875-1900

  2. Video in Media Folder American 07/08

  3. Is he right? • Gordon Gecko is a fictitious character who used his wealth and power to merge his company with others. • Where would he fall of the economic spectrum?

  4. Objectives: At the end of this lesson, by studying the innovative business practices of J.D. Rockefeller, Andrew Carnegie, and J.P. Morgan, you should be able to define horizontal and vertical integration as well as the merger movement. Finally, you will place the American economy in it’s proper place on the economic spectrum at the turn of the century.

  5. Business Merger/Combination/ Consolidation/IntegrationThink of them as the same. The last quarter of the 19th century was a time of business consolidation or mergers. Companies were said to be integrated or combined to create more efficiency. These combinations limited competition between businesses.

  6. Healthy competition is good for two reasons: HigherQuality Lower Prices An Absence of competition can lead to? Lower Quality Higher Prices

  7. Competitive Market Consumer choice, price comparisons, corporate policy comparisons, nutritional comparisons, product selections. Health Care Debate Rockefeller

  8. Competitive Market Consumer choice, price comparisons, corporate policy comparisons, nutritional comparisons, product selections.

  9. Horizontal Integration/Mergers A company acquires other companies in the same competitive market.

  10. Non-competitive Market (Monopoly) Consumer choice? Price breaks? Influence on corporate policy? Product choices? Nutritional choices?

  11. Non-competitive Market (Monopoly) How might Carnegie and Rockefeller justify this setup? More efficient/ Survival of the fittest.

  12. Carnegie

  13. Vertical Integration Through mergers and acquisitions, the company owns all phases of the business process.

  14. J.P. Morgan

  15. Which is better for the economy?

  16. Economic Spectrum On a separate sheet, write which economic system (Communism/Socialism, Fascism, Pure Capitalism) and which type of government (Dictatorship, Democracy) fall under each system. Note Left wing and Right wing extremes. Command Mixed Mixed Command Market Communism/ Socialism Pure Capitalism Fascism Democracy Dictatorship Dictatorship

  17. Where do you think the American economy fell on this spectrum at the turn of the century? Explain

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