How did vertical integration help industrial giants like Gustavus Swift and Andrew Carnegie?
Show answer and explanation
Correct answer: It reduced costs by controlling production from raw materials to distribution
By owning the mines, transportation, and refineries, a company could eliminate the 'middleman' and guarantee a steady supply of resources. This efficiency allowed them to undercut competitors and maximize profits.
Practice all 20 Industrialisation and Big Business questions
Keep practicing
More Industrialisation and Big Business questions
- The Sherman Antitrust Act of 1890 was initially ineffective primarily because:
- Which inventor is most associated with the 'Wizard of Menlo Park' and the development of the incandescent light bulb and a system for power…
- What was a major consequence of the 'Great Railroad Strike of 1877'?
- The Knights of Labor differed from the American Federation of Labor (AFL) in that the Knights:
- The term 'Robber Baron' was used by critics to describe powerful industrialists who:
- How did the expansion of the national railroad network act as a 'catalyst' for industrialization?