Second Industrial Revolution (1870-1910): Innovations, Impacts, and Global Expansion
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Second Industrial Revolution (1870-1910)
Rapid Industrialization and Finance Capitalism
The period between 1870 and 1910 witnessed rapid industrialization fueled by the rise of the financial sector. This involved investment activities through banks and stock exchanges, creating capital without direct product manufacturing.
Innovations and Changes
Increased Production
- New Sources of Finance:
- Joint-stock company: Individuals contribute capital, buy shares, and receive/lose profits proportionally.
- Bank: Lent money to businesses with interest.
- Stock exchange: Marketplace for buying and selling company shares.
- New Business Structures:
- Cartels: Horizontal associations of companies in the same industry, collectively deciding production and prices.
- Trusts: Vertical