Multinational Companies and the Industrial Revolution
Multinational Companies
Multinational companies are entities with significant economic power, aiming to monopolize the global market for various products. They often exert considerable influence over the governments of countries where they operate. They can withdraw investments and patents if their interests are threatened, effectively holding these economies hostage. This dynamic can lead to a form of political and economic colonialism, where the financial interests of the multinational outweigh the interests of the host nations, which are often reduced to providing cheap labor.
The United States serves as a prime example of multinational capitalism. Profits generated in other countries are often repatriated to the U.S., rather than reinvested in the host countries where the wealth was initially created.
Changes in the Industrial Revolution
The Industrial Revolution brought about profound changes, including:
- Emergence of Industries: The rise of cotton and textile industries.
- Demographic Shifts: Sustained population growth, urbanization, and migration.
- Agrarian Revolution: Improved food production through new technologies, increased productivity, and a shift from subsistence to market agriculture.
- Revolution in Transport and Communications: Development of railways, ships, telegraph, and telephone.
- Expansion: The Industrial Revolution spread from England to France, Germany, Belgium, Japan, and the USA.
1st Industrial Revolution
The 1st Industrial Revolution was a gradual process that significantly increased the production of goods through the incorporation of machines and new energy sources. It began in England and spread across the continent, impacting transport, agriculture, population, and industrial development.
Key Aspects:
- Machines: Capital investment in the cotton textile industry.
- Labor: Women and girls worked in difficult conditions.
- Reinvestment: Profits were reinvested in the development of chemical industries, such as bleach and detergents, and dyes.
- Energy: Steam-powered machines fueled by coal increased the demand for machinery.
The Revolution of Transport
Britain’s transport infrastructure benefited from its proximity to ports, a network of waterways, and road construction and maintenance. The application of steam power led to the development of modern railways, facilitating the easy transport of heavy goods and people and reducing travel times.
Objective:
Structuring the internal market.
Effects:
The Industrial Revolution led to a different organization of work, economic structure, and social relationships, creating a new society.
Political Text: Jules Ferry’s Speech
The following reflects Jules Ferry’s speech before the Chamber of Deputies, emphasizing the importance of colonies and their consequences. His arguments are based on these ideas:
- Countries need colonies to manage excessive or insufficient capital stock and to establish settlements.
- Colonies provide an outlet for European industries during times of crisis, leading to significant economic and political changes.
- Superior races have a right over inferior races.
Ferry argues that the Declaration of the Rights of Man was not intended for the indigenous populations of Equatorial Africa and justifies interventions in countries without any claims by these populations.
Using the example of France’s conquest of North Africa, Ferry suggests that this action brought more justice, material benefits, and moral improvements to the region.