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Difficulty: MediumGlobal Spread of Industrialization

"The import of foreign manufactures operates as a transfer of the value of our own labor to foreign countries. A nation which is both agricultural and manufacturing can support a larger population and maintain its independence far better than one which is merely agricultural. Therefore, the encouragement of domestic manufactures by protective tariffs and government incentives is essential to secure our national independence and prosperity."

— Alexander Hamilton, United States Secretary of the Treasury, *Report on Manufactures*, 1791

Which of the following global developments in the late eighteenth and early nineteenth centuries is best illustrated by the excerpt?

  1. A
    The rapid adoption of completely unregulated, free-market policies that eliminated all state intervention in industrial trade.
  2. The active role of governments in promoting domestic manufacturing to compete with British economic dominance.Answer
  3. C
    The immediate shift toward heavy industries, such as steel production and electrical grids, during the early stages of industrialization.
  4. D
    The reliance on direct colonial annexation of European territories to secure consumer markets for raw materials.

Answer

The active role of governments in promoting domestic manufacturing to compete with British economic dominance.
The correct answer is correct because the excerpt demonstrates how nations outside of Great Britain, such as the United States, utilized government policies—specifically protective tariffs and incentives—to foster domestic industrialization and protect their economic and political sovereignty against British industrial dominance.

Step-by-Step Solution

1
Analyze the source text to identify the author's primary argument.
The author argues that domestic manufacturing must be encouraged through protective tariffs and government incentives to maintain national independence.
To understand the economic approach being advocated by the United States government in 1791.
2
Contextualize the document within the global spread of industrialization.
The document shows an early effort by a nation outside Great Britain to build its own industrial capacity using state-sponsored support.
To connect the specific historical text to the broader global trend of industrial spread and state involvement.
3
Evaluate the options to find the one that accurately reflects this historical process.
The statement regarding the active role of governments in promoting domestic manufacturing to compete with British economic dominance matches the text and historical context.
To select the correct response by aligning the text's advocacy for tariffs with global industrialization patterns.

Key Concept

State-sponsored industrialization and national competition during the global spread of the Industrial Revolution.
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Topics

Global Spread of Industrialization

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