WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900
AMERICAN INDUSTRY DEVELOPMENT IN THE GILDED AGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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buying his competition and closing their plants
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buying iron mines and means of transportation
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persuading laborers and managers to cooperate
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bribing government officials to allow a monopoly
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Detailed explanation-1: -Carnegie also created a vertical combination, an idea first implemented by Gustavus Swift. He bought railroad companies and iron mines. If he owned the rails and the mines, he could reduce his costs and produce cheaper steel.
Detailed explanation-2: -The strategy was a great success. In addition, Carnegie Steel bought up its sources of raw materials and shipping (in a strategy called vertical integration) and bought out and absorbed its competitors (horizontal integration) to dominate the steel industry.
Detailed explanation-3: -Vertical integration helped the Carnegie steel business by purchasing all the components that went into making steel: buying the mines that produced the raw materials, the railroads that shipped them, the electricity providers for the factories, etc.
Detailed explanation-4: -Vertical integration meant that Carnegie controlled every the aspect of the making of steel from beginning to end. Carnegie undersold all of the competition. Carnegie’s business plan gave him 100% control of the steel industry.