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The Industrial Revolution In Britain (1750S –1850S) Transition From Competitive Capitalism To Monopoly Capitalism The Demands Of Industrial Capitalism Methods Of Obtaining Salt Factors That Contributed The Rise Of Factory System (Industrial Capitalism) Monarchy The Role Of The Tudor Monarchy The Role Of The Tudor Monarchy To The Development Of Mercantilism In England The Role Of The Tudor Monarchy Competitive Capitalism To Monopoly Capitalism Industrial Revolution

THE DEMANDS OF INDUSTRIAL CAPITALISM

THE DEMANDS OF INDUSTRIAL CAPITALISM

The Meaning of Industrial Capitalism

Capitalism is the social, political and economic system based on private ownership of the major means of production.

It first developed in Europe during the 15th century after the collapse of Feudalism. Under the system of capitalism, companies and individuals own and direct most of the resources used in production of goods and services.

STAGES OF CAPITALISM

  1. Commercial or mercantile capitalism
  2. Industrial capitalism
  3. Monopoly capitalism

1. Commercial or mercantile capitalism

It was the first stage of capitalism where by its economic system was based on trade and commerce.

It took place between the year 1400 and 1750. The merchants obtained wealth through trade activities.

A lot of wealth was accumulated during this period and therefore increased new demands that resulted into development of another stage of capitalism known as industrial capitalism

2. Industrial capitalism

This was the period when machines begun to be used for production in industries. The transition to industrial capitalism was the period when mercantile capitalism was giving way to industrial capitalism. This stage of industrial capitalism took place between the 1750s and 1870s.

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Industrial Capitalism

THE DEMANDS OF INDUSTRIAL CAPITALISM

1. Needs for raw materials

The increasing production due to expansion of industries needed large quantities of raw materials supply.

These materials included cotton, coffee, tea, iron ore, palm oil, sisal, sugar cane, tobacco and rubber.

The available raw materials could not meet the demand needed by industries. This resulted into the search and control of the sources of raw materials.

2. Need for Market

Due to the investment of capital in production, industrial goods flooded the European markets.

Overproduction and under consumption became a critical problem among the industrial capitalists, hence they were forced to look for markets outside Europe.

3. Need Areas for investment

Due to unreliable markets and high concentration of capital in Europe, profit marginalization occurred.

As a solution new areas for investment were needed among other areas, Africa provided the best areas for investment of such capital.

4. Need areas for Cheap labors

Due to labor consciousness caused by working class movements in Europe and Britain in particular, the need to search for cheap labor become important because it was very expensive to hire a labour in Europe.

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This was a measure taken to compete in production for profit maximization.

5. Need area for settlement

Also they demanded the area for surplus unemployed personal population in their countries which was caused by the discovery of machines that replaced human labour.

Methods Of Obtaining Salt Factors That Contributed The Rise Of Factory System (Industrial Capitalism) Monarchy The Role Of The Tudor Monarchy The Role Of The Tudor Monarchy To The Development Of Mercantilism In England The Role Of The Tudor Monarchy Competitive Capitalism To Monopoly Capitalism Industrial Revolution

REASONS FOR THE INCREASING DEMAND OF INDUSTRIAL DEVELOPMENT IN 19TH CENTURY

1. Competition in industrial production

European capitalist nations increased the demand for industrial development as a result of competition in industrial production.

2. American independence

Resulted in the development of the industrial sector. By the beginning of the 1870s, Europe could not easily enter U.S.A since it had introduced protective tariffs to keep out foreign manufactured goods and protect its industries. By the 1860s, markets for manufactured goods and sources of raw materials in Europe had greatly declined.

3. Accumulation of wealth

In order to ensure this, they decided to invest the wealth that was being obtained in industries into other areas outside Europe.

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4. Overpopulation and unemployment

The problem of overpopulation and unemployment was also rising in European countries. Therefore, the solution to those problems was sought outside Europe.

5. Demands for raw materials

The highly demanded raw materials were cotton, oil, sugar cane, ivory, rubber and iron ore. Most of these raw materials could not be found in Europe in large quantities. In fact, those tropical crops could not grow in Europe. Following this Europe decided to produce such raw materials in Africa.

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