GBH 1

21 flashcards · Other · by Daniel F.

1. neoclassical perspective (Marshall)

   Perfect competition perfect access to information operates efficiently at the lowest point of marginal cost curve MC=MR firm is not focused on growth Role: transform input into output maximize profit firms are price and technology takers Early british metal working firms

2. business history dimensions

   comparative: comparing firms dynamic: focusing on the change of firms dynamism: how firms grow and what happens when they do complexity: how complex firms function

3. Entrepreneurial perspective

   Entrepreneur is the agent of technological change human effort is everything from within the firm technology is new: consumer goods, methods of production and transport, markets, forms of organization main driver in growth process Entrepreneur is motivated by monopolistic profit Competition but no price setters Competitive habit Creative destruction is essential in capitalism disequilibrium more important

4. Marshall vs Shumpeter

   Marshall - equilibrium Schumpeter - disequilibrium and change

5. Entrepreneur

   An entrepreneur is often found to be involving the individual or joint capacity to create something new that has a positive economic impact Contra: Smiths, Marx

6. entrepreneurial paradox

   organization’s bureaucratic rules and routines can undermine the entrepreneur's vision

7. Proto-industry europe

   farming and agriculture dominates few cities and low mobility sensitive to fluctuation - bad weather, wars no population growth cuz of famine later innovations in agriculture made economy more flexible and growing demand increased long-distance trade - ships legal contracts institutional modernization

8. Putting-out system

   Merchant-entrepreneur had capital goods, coordinated cottage workers (subcontractors) to perform some phases of the production in their homes with their own machines cheap and efficient flexible: easy to increase decrease labourers no surveillance: no control over quality, efficiency, reliability piece-wage workers are paid by unit made no incentive to be better

9. Craft guild

   association of workers of the same trade for mutual benefit located close to the source of raw materials clusters of skilled craftsmen master to apprentice guild rules quality and quantity price conflict resolution apprentice training and master process Pro organized labor and capital regulated craft activities managed human capital formation quality control full monitoring Contra restricted production and demand by maintaining relatively high prices inhibited technological innovation by contro…

10. industrial revolution

    sharp transitions in technological paradigms clusters of inventions and associated general purpose technologies Steam and the First Industrial Revolution (1780-1850) Primarily in GB Electricity and the Second Industrial Revolution (1870-1913) ICT and the Third Industrial Revolution (1970-...)

11. Coal and industry

    steam engine supplements water power independence from water sources move from water and cities to near coal Manchester reliable production dependence on coal, later oil and electricity

12. First industrial revolution

    British exception - commerce quickly became heart of the economy Entrepreneurs mainly in GB, Netherlands, Belgium, Germany

13. The organization during the first industrial revolution

    small ownership and control - founders and their families legal association to owner simple bureaucracy owners were the managers, supported by foreman simple cost structure hard to finance, geo-proximity to lender

14. Factory System

    entrepreneurs combined fixed capital and working capital to produce large quantities of standardized goods for domestic and foreign markets large amount of worker under one roof separation of production and consumption specialization of labour spread quickly though GB, slower through EU Impact on society macro - economic growth, international trade micro - employees had to urbanize, mental problems, commution

15. Managing the Transformation to factory system

    factory villages effective method of control new social class - worker, industrial bourgeoisie

16. "benefits" of the factory system

    control favouring orgs rather than employees power and disicpline economies of scale lower communication costs higher transportation costs women can also work

17. Economies of scale

    factories specialize is one good factories cluster Mechanization capital intensive industries expanded traditional industries more capital intensive

18. putting out vs factory

    Earlier putting-out system - Principal-agent problem Piece-wage incentivizes to "cut corners" Factory Time-wage is possible wants to keep the expensive machines running 24/7 Foreman's supervision ensures work Owner is in the factory and supervises the process

19. Discipline in the factory system

    Better profit if longer work hours higher discipline and productivity expensive machines should be always running

20. Mokyr’s explanation of the rise of the factory

    Industrial Revolution saw a huge expansion in the knowledge base underpinning the used techniques and machines Division of knowledge becomes necessary due to complexity Factories foster full and reliable transmission of knowledge on the factory floor Size of the factory/firm depends on 3 factors: Complexity of technical knowledge (size increases) Communication technology (size decreases with lower information costs) Transport technology (size increases with lower commuting & shipping costs) 3 r…

21. Downsides of factories

    Child labour Injuries Alienation from communities/nature Alienation from factors of production Wage slavery Commuting Discipline & surveillance Inflexible leisure/work split Competition De-skilling