SOC 210: Chp 3

Lord Rothschild said finance is

"the movement of money from point A, where it is, to point B"

A global merchant setting out on a journey to trade in the early 1400's would probably have set his course for

China

It was thought that the industrial revolution took off in England because the wars had left the country with a shortage of laborers, making it necessary to find an alternative method of production.

False

The 17th century was an era of mercantilism during which much wealth was sent abroad to expand colonies and huge amounts of foreign goods were improved.

False

Who was the first to use finance in a large-scale, public way?

The Dutch

African slavery was not a European invention, but was transformed by the exports of slaves from African to European colonies.

True

Colonialism and conflict weakened Europe colonial powers and after WW1, the US emerged as the leading economic power in which new types of factory organizations, and corporations developed.

True

Corporations initially formed to limit the liability of the capitalist, drew the suspicion of some economists because of the vast power they had and their ability to manipulate the markets

True

In 1873 a depression which was felt throughout the industrialized countries of the world showed that growth and expansion of capitalism could only continue was by

expanding into and colonizing previously untouched areas of the world.

A trader leaving China with goods he had purchased for trade would...

follow the sea route to Iran, cross land, then continue by sear to Italy.

Forming trading companies was the most profitable way to conduct trade in the 1700's because

they were private enterprises made up of members from many countries which gave them the ability to expand their trade globally

The rise in exports of such goods as coffee, cotton and sugar from the colonies...

was a type of exploitation termed as unequal exchange