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Robber Barons and Labour Unions · US History

Andrew Carnegie's use of 'Vertical Integration' involved:

  1. Hiring only family members to manage his steel mills
  2. Controlling every phase of the steelmaking process, from iron mines to finished rails
  3. Merging with every other major steel company in the United States to form one giant single corporation
  4. Moving his factories to the South to avoid northern unions
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Correct answer: Controlling every phase of the steelmaking process, from iron mines to finished rails

By owning the mines, the ships, the railroads, and the factories, Carnegie eliminated middleman costs and ensured a steady supply of resources. This efficiency allowed him to produce steel more cheaply than any of his competitors.

Difficulty: Medium Question 12 of 20

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