Monopoly, Oligopoly, and New Production Systems in the 2nd Industrial Revolution

Monopoly, Oligopoly, Cartels, Trusts, and Holdings

• Monopoly: A single company has complete control of a sector.
• Oligopoly: Stocks in each sector are controlled by a few large companies.
• Cartel: An agreement between companies to divide the market and artificially raise or maintain prices.
• Trust: A permanent merger of companies.
• Vertical Integration: A firm controls the entire production process.
• Dumping: Selling at a price below production costs temporarily to eliminate competition.
• Holding: Companies are controlled by the same bank.

New Production Systems

Taylorism: Scientific management of work based on the ideas of Frederick Taylor.

• Division of Labor: Each worker is assigned specific tasks in the production process.
• Tasks are timed to establish sanctions and incentives.
• Fordism: The assembly line is a prime example.
• Scientific organization of labor based on Research and Development (R&D).
• Major investments to boost consumption (advertising).

Great Britain's Economic Position

Great Britain was the leading world power in the 19th century but failed to adapt to the Second Industrial Revolution.

• Difficulties in obtaining new energy sources (oil).
• Lack of innovation in Research and Development (R&D).
• Slow adoption of new industries.
• Remained a great power until World War I due to its financial capital, colonial empire, and leadership in shipbuilding and shipping routes.

United States' Economic Growth

The United States experienced accelerated growth during the Second Industrial Revolution.

• Abundance of natural resources.
• Vast land for colonization.
• High immigration rates.
• Rapid mechanization.
• The "American Dream": Anyone can climb the social ladder.
• The beginning of US expansionism in the Americas.

Germany's Economic Rise

Causes of the rise:

• Late political unification (1870).
• State interventionism.
• The Second Industrial Revolution was directed by the state.
• Specialization in steel, metallurgy, and chemistry.
• Lack of new energy sources led to an aggressive foreign policy.

Limited Liability Companies (LLCs)

• Nature:
  • Minimum number of members: If only one, it is called a single-member LLC.
  • Liability of partners is limited to contributed capital.
  • Capital is divided into shares.
  • Minimum capital of €3,005.06, fully subscribed and paid at the time of incorporation.
  • The company name must be followed by "SL" or "LLC".
  • The intention to transfer shares must be communicated to the administrators.
  • These companies are taxed under corporate income tax.
• Constitution:
  • The deed must be registered in the commercial register.
  • The company's statutes must be included.
  • Statutes must contain: company name, purpose, address, share capital, administrative structure, and any special agreements or conditions.
• Governing Bodies:
  • General Meeting: The deliberative and decision-making body.
  • Administrators: The executive body of the company.
• New Limited Company (Sociedad Limitada Nueva Empresa):
  • Maximum number of partners: 5, who must be individuals.
  • The number of partners can be increased through the transfer of shares.
  • Minimum share capital of €3,012, paid entirely in cash at the time of incorporation.
  • Maximum share capital of €120,202.
  • The company name must include the surname and first name of a partner, plus a unique alphanumeric code.