Final Exam

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1) Give two (2) specific examples of technological innovation by two different (2) entrepreneurs in the development of American capitalism.

Industrial Revolution in America began with an act of economic espionage. a mechanic named Samuel Slater left his country for America, disguised as a farmer and In his head were the closely guarded secrets of British textile manufacturing. The next year, Slater came up with a mill from memory at Pawtucket, on Rhode Island with the backing of two local capitalists.

With the first factory in America. Slater's mill that was used for making textiles, woven fabrics used for clothing and hundreds of other products in this case cotton cloth was manufactured by spinning machines powered by water. Although America had not yet discovered great deposits of coal, the embryonic industrial revolution would be a revolution primarily in water-powered, textile production.

In continuation, on with this series on men who built America, Rockefeller as we know him either a U.S. as Senator or the famous Rockefeller Center in New York City, some way or another we have heard of the name. He is most known for bringing oil to the homes of American families at an affordable cost between the 1860s and 1910. He wanted to save consumers money. With time he once wrote to a partner, “Let the good work go on. We must ever remember we are refining oil for the poor man and he must have it cheap and good.“cheap and good” the poor man had it!in the year the 1870s, the wealthy people could afford whale oil and candles to light their homes at night. But Rockefeller was able to introduce a new oil (kerosene) and offer it at such a cheap price that all American homes (including working class) could afford the one cent per hour to light their homes. Which allowed people to be much more productive, they could now work and read at night.

He used bookkeeping style of entrepreneurship led to important savings where other similar companies had wasted. For example, when others had considered the byproducts of refining oil for kerosene as waste (some dumped gasoline in rivers), He and his partners found ways to use gasoline for fuel and tar for paving. Other savings that helped consumers was by transporting oil in bulk quantities through Vanderbilt’s railroad company

2. Give two (2) examples of Joseph Schumpeter's theory of "creative destruction" in the development of American capitalism. (Kocka, Capitalism: A Short History, p. 14)

This can be described as the dismantling of long-standing practices in order to make way for innovation.

As Schumpeter defines creative destruction as a ''process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.'' Schumpeter reasoned that fundamental change in any economy was principally due to innovation and adoption of new technology. the Production processes and corporate operations change to adopt new innovations and technology, and the demand for new products resulting from innovation also becomes a driver of change.

This Internet is perhaps the most all-encompassing example of creative destruction of our times. All losers were not only retail clerks and their employers but bank tellers, secretaries, and travel agents. With mobile Internet added many more losers, from taxi cab drivers to mapmakers.

All winners, beyond the obvious example of programmers, might be just as numerous. After that the entertainment industry was turned upside down by the internet, but its need for creative talent and product remains the same or greater. On this matter, the Internet destroyed many small businesses but created many new ones online.

On his point of note, Schumpeter note is that an evolutionary process rewards improvements and innovations and punishes less efficient ways of organizing resources.

The Online ad-supported news sites such as the Huffington post are leading to the creative destruction of the traditional newspaper. On that Christian Science Monitor announced in January 2009 that it would no longer continue to publish a daily paper edition, and would only be available online daily and provide a weekly print edition which made Seattle post-intelligence to become online-only in March 2009. This made employment in the newspaper business to fell in 2013. On that same period, employment in internet publishing and broadcasting grew. That led to Traditional French alumni networks, which typically charge their students to network online or through paper directories, are in danger of creative destruction from free social networking sites such as LinkedIn and Viadeo.

3)Give two (2) examples of business organization used by two (2) different entrepreneurs, businesses or industries in the development of American capitalism.

the capitalist society is one that values

1) private property rights

2) the enforcement of contracts

3) the voluntary exchange.

The varying deviations from capitalisms are in the purest form, most specifically when private property rights are eroded by governmental influence.

Crony Capitalism

It refers to situations where a business' success is impacted by strategic influence from civil servants, politicians, or those in authority. Orson Welles the famous film, Citizen Kane, provides a good illustration of crony capitalism. The quasi-biographical film, set in the early 20th century, examines the life of a newspaper magnate (loosely based on several tycoons of the day, such as William Randolph Hearst) who bought off politicians in return for favors.

Democratic Capitalism

In Democratic case Dr. Edward Younkins, an author of capitalism and commerce, describes three tenets of democratic capitalism:the economy based predominantly on free markets and economic incentives, as a way of democratic polity, and a classical-liberal moral-cultural system which encourages pluralism, democratic capitalist system assumes pluralism, making sure that individuals have different opinions and interests, allowing them to associate freely in order to further those interests. with Founding Fathers of the United States believed in democratic capitalism, firmly placing value on liberty and equality in the United States Constitution.

4)Give two (2) examples of business strategy by two (2) entrepreneurs or industries in the development of American capitalism.

The business strategy is the means by which it sets out to achieve its desired ends (objectives). that can simply be described as long-term business planning.

One is Generic (general) strategies: Growth i.e. on the expansion of the company to purchase new assets, including new businesses, and to develop new products. with Inland Revenue which has expanded from being just a tax collector to other functions such as collecting student loan repayments and paying tax credits.

And Competitive strategies.

This is concerned with doing things better than rivals and being competitive a firm shouldn't just copy the ideas of rivals. It should seek to out-compete rivals.

5)Give two (2) examples of the role of capital in the development of American

Let’s describe capital as a physical item, such as tools, buildings, and vehicles that are used in the production process. From 1960s economists have increasingly focused on broader forms of capital.

For example:

With investment in skills and education

this can be viewed as building up human capital.

And knowledge capital investments in intellectual property can be viewed as building up intellectual capital.

6)Give two (2) examples of the role of labor in the development of American capitalism.

Every man is both a consumer and a producer. Labour is an important factor not only in production but in all other economic activities.

On the Basis of Production:

All Producers produced the commodities when they were assured by consumers that their products would be consumed. as it is Labour is the basis or the compulsory factor of production. It is a mobile factor and brings in use the other factors of production like land and capital in the development of capitalism.

And Basis of consumption:

On Labour, it is a human factor and the main source of consumption. All utilities are created (Production) for the satisfaction of his needs. Keynes lord was of the view that a stimulus to investment comes via an increase in consumption. When investment increases, income increases which lead to an increase in consumption and The basis of this consumption is labor.

7) Give two (2) examples of the role of government in the development of American capitalism.

The system is a public institution that doesn't engage voluntarily but rather uses taxes regulation and military objectives that are free of capitalism.

Direct assistance, the system provides many kinds of help to individuals and firms. they support individuals who cannot really care for themselves by making grants to low-income parents with dependent children and through social insurance programs.

The system helps smoothen the business cycle for the macroeconomic forces as well as regulations on certain firm activities

8)Give two (2) examples of the role of competition in the development of American capitalism.

In a competitive strategy, this was an important ideal in the development of American capitalism. The strategies are concerned with doing things better than rivals. On competition, a firm shouldn't just copy the ideas of rivals.

Either By selling goods at lower prices than rivals which is possible when a firm is the market leader and benefits from economies of scale.

And By differentiating your product from those of rivals that enables you to charge a higher price if desired.

9)Give two (2) example of the role of monopoly in the development of American capitalism.

The market structure characterized by a single seller, selling a unique product in the market. with monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute in relation to capitalism in America.

10)What is capitalism? Copy and paste your Discussion Board POST and your Discussion Board RESPONSE into your Word Document.

Capitalism as an economic system where private entities own the factors of production it helped in the development of technology in America.

Works cited

Sklair, Leslie. Capitalism and Development. New York: Routledge, 2002.

Kocka, Jürgen, and Jeremiah M Riemer. Capitalism.