Thursday, January 13, 2011

What are the 2 most important reasons that businesses grew during the 19th century industrial revolution and why?Thanks!

One of the earliest businesses to expand at the beginning of the Industrial Revolution was the production of textiles. That growth could be accounted for by the simple but important factors of supply and demand -- Before the Revolution, the business, being a "cottage industry," meant that textiles were produced slowly, by hand, were expensive, and resulted in a limited supply. After the Revolution, were produced quickly, by machinery, and were cheap, and resulted in an abundant supply.  The demand, high before the Revolution. became even higher afterwards, allowing for the business to expand production.  However, other factors were critical in the process.  The efficiency created by industrializing allowed for wealth to be created, which could be reinvested to improve the business.  The growth of banking meant that additional capital became available to generate more capital, to invest in more businesses.  Not only was money used to purchase better machinery, the machinery itself, the product of new inventions and sources of energy, were functions of more sophisticated technology, which also continued to be applied in innovative ways.

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