MGEC41H3 Lecture Notes - Lecture 1: Oligopoly, Retained Earnings, Investment Banking
1. the nature of business - small family run business dominated. 1. infrastructure: transportation - horse & wagon, communication - public mail by horse, financing - lack of financial infrastructure a. i. Banks not willing to take risks: r&d and tech - undeveloped, government - involved in some large project: canals , railroads only. Not a lot of trust b/w us & canada. Not very fast & reliable means of comm. Mass production: cost effective for firms to expand market, production line and output level (scale & scope) Steamship & railroad system dominated passenger& fright transportation level. A reliable distribution of goods to a national market. Ontario has reliable system - b/w us & canada. Communication telephone, telegraph enabled large firms to monitor & control geographically separate suppliers, factories, and distributors o o o. Join it to to bakery & teach them techniques. Telegraph - later that day and send it bk. Financing insurance firms, investment banks enabled businesses to be.