From 1865 to 1910 the U.S. experienced a surge of industrial growth. With this many advances and progress, as well as problems, followed.
(*Read 6.1 for supplemental information*)
Your assignment:
Compare and contrast vertical and horizontal integration and then relate laissez-faire capitalism to our current economic situation.
Due: Sunday 11/22/09 by no later than 11:59p.m.
Friday, November 20, 2009
12 comments:
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Both vertical and horizontal integration was used by John Rockefeller.
ReplyDeletevertical integration controlled costs and horizontal integration expanded companies by buying other companies involved in the same business.
vertical integration-he inquired companies that provided materials and services upon which his interproses depended
ReplyDeletehorizontal integration- one companys ownership of other companies involved in the same business in this case oil refining what companies standard oil could no buy it tried to control through the esablishement of trust
laisse-faire capitalism is different form to day because their government was totally up to their people and ours the government has all the control in regulation and spending
Andrew Carnegie established the first monopolies in America. He used vertical integration to control costs by acquirering companies that depended on his enterprises. John Rockefeller used horizontal integration to expand his companies. His company owned other companies involved in the same line of business. Both were very effective in growing large businesses up.
ReplyDeleteThe laizzez-faire capitalism is the theory of no government regulation on economic matters. The defference from that time to now day is that our government is very much involved in our economy. We have stimulus packages and government owned banks. The thought back then was that businesses feed from the government would prosper, but in reality we need the government to have a successful economic system.
Vertical integration is when one enterprise has different sub-companies that provied materials and services upon which the enterprise depends upon.
ReplyDeleteThis would benefit both the seller and the consumer because the seller can get more business and the consumer will get the product at a lower price.
Horizontal integration is where one company's ownership of other companies involved in the same business.
This would benefit the large company because they would control the playing field so there wouldn't be as much competition. This makes it easier to sell their product.
Laissez-faire capitalism happens when there is no government interference with economic matters. In our situation the government is trying to help with everything. The government is still spending billions of dollars and we still have a rising percentage of people without jobs.
Vertical and horizontal integration both deal with marketing. Vertical integration helps businesses and companies by promoting better growth and efficency. Horisontal integration is a strategy used to sell a product in numerous markets.
ReplyDeleteLaissez-fair capitalism is where the government is not involved at all in the production or anything with us civilians. Our current economic situation is where the government is getting involved trying to boost our economy up since it isn't all that great right now.
Vertical integration is the aquiring of businnesses that control the prices of goods a company buys. Ultimately it lowers the companies cost of buying materials. And lowers the product cost. Horizontal integration is the buying out of rival companies to increase income.
ReplyDeleteLaissez- Faire capitalism is when the government doesn't take part in economic matters. But today the goverment does interfere. This day and age the government bails out companies, and takes an active approach to the economy.
vertical integration was used to aquire companies that provided materials and services which were needed for a company to survive.
ReplyDeletehorizontal integration was one companies ownership of other companies that are involved in the same business.
Laizzez-faire capitalism was no government regulation on economic matters so that the economy would prosper, now days our economy is isn't prospering and the government is very involved in the goods coming in and out of our country.
The vertical integration was a strategy whereby one company acquires other companies that provide materials and services necessary to the first company.
ReplyDeleteOn the other hand horizontal integration is the method of expanding a company by buying other companies involved in the same business.
Laissez-Faire capitalism the theory that opposes government regulation of economic matters. In our current economic situation we are the opposite of the Laissez-Faire capitalism because our government does interfere with the people. Such as bails and what not.
Andrew Carnegie, a Scot who immigrated to the United States in 1848, established some of the first monopolies, which is exclusive control, such as in trade or industry, that eliminates competition. He entered the steel business, and beat out competition by buying supplies in bulk and producing goods in large quantities. By using the economies of scale, Carnegie was able to lower profuction costs and increase profits. Carnegie also used vertical integration to control costs. He aquired companies that provided materials and sevices upon which his enterprises depended. An oil tycoon John D. Rockfeller also used vertical integration to make his own company more competitive, eventually acquiring oil fields. Although his main method was horizonal integration, one's company ownership of other companies involved in the same business, in this case oil refining. In vertical the government tries to help, in horizontal a company buys another company.
ReplyDeleteThe laissez-faire say for no government regulation of economic matter. But while doing that the economy suffered even more. But the way the government is now and we did use it, it still wouldn't help us.
Vertical integration is when a business(1) buys out other businesses(2 or more) that supply the resouces business(1) needs to produce goods.
ReplyDeleteHorizontal integration is when a business(1) that owns others, that are in the same field or business, help each other out with there production. Also, some companies that were in the same field but weren't bought out were trying to control/be controlled by a trust.
So, in vertical integration, the main business could probably cut the costs of its resources down, since it owns the businesses that supply its production line. Whereas in a horizontal integration, the main business holds no authority over the businesses that its owns, but all the companies help each other out.
Laissez-faire capitalism is where there is no government infering with businesses. In our current economy, we need to be somewhere that has traits from laissez-faire capitalism and our current system. I think we need to let monopolies happen, but we limit what the companies and/or businesses can charge. If we do that, it might hel stimulate the economy.
Vertical integration is a strategy where one company aquires other companies that provide materials and services necessary to the first company.
ReplyDeleteHorizontal integration is a method of expanding a company by buying other companies involved in the same business.
Laissez-faire capitalism is a theory that opposes government regulation of economic matters.
This is different from our current economic situation because it seems to be totally controlled by the government. They make improvements, or at least try to. sometimes it makes matters worse.
Vertical integration helps businesses and companies by promoting better growth and efficency. Horisontal integration is a strategy used to sell a product in numerous markets. Laissez-fair capitalism is where the government is not involved at all in the production or anything with us civilians.Our current economic situation is having a low employment rate and our stocks are way down.
ReplyDelete