Question

Difficulty: MediumDevelopment of Industrial Capitalism and Transnational Businesses

"Our sales agents in Brazil, India, and China report a growing demand for domestic machinery. By offering these machines on installment plans, we have enabled households of modest means to participate in the market economy. The coordination of our manufacturing plants in Elizabeth, New Jersey, and Glasgow, Scotland, ensures a steady supply of interchangeable parts to our global assembly points, proving that manufacturing and marketing must be managed on a global scale."
—Annual Report of the Singer Manufacturing Company, 1893

The operations described in the passage best illustrate which of the following global economic developments in the late nineteenth century?

  1. The growth of transnational businesses that relied on global manufacturing networks and new consumer practices.Answer
  2. B
    The persistence of mercantilist monopolies designed to exclude foreign competition and accumulate imperial bullion.
  3. C
    The direct political annexation and territorial administration of Asian and Latin American nations by Western governments.
  4. D
    The implementation of Marxist revolutionary programs to redistribute the ownership of industrial machinery to working-class families.

Answer

The growth of transnational businesses that relied on global manufacturing networks and new consumer practices.
The correct answer is correct because the Singer Manufacturing Company represents a classic example of a transnational corporation that established manufacturing facilities in multiple countries (the United States and Scotland) and marketed products globally (in Brazil, India, and China) using new financial instruments like installment buying to expand its consumer base.

Step-by-Step Solution

1
Analyze the source text for key details regarding the company's organization and methods.
The text describes a company with factories in the United States and Scotland, sales agents in Brazil, India, and China, and the use of installment plans for consumers.
Identifying these details helps determine the nature of the economic activity (transnational business and consumer credit).
2
Relate these details to late-nineteenth-century global economic developments in the AP World History curriculum.
The expansion of factories across national borders and global sales networks represents the rise of transnational corporations, while installment plans represent new practices in banking and finance.
This connects the specific historical evidence in the source to the broader historical developments of industrial capitalism.
3
Evaluate the options to find the one that best matches the evidence in the source and historical context.
The option highlighting the growth of transnational businesses and new consumer practices is correct, while other options mischaracterize the business as mercantilist, direct political colonization, or Marxist.
This eliminates incorrect distractors and confirms the correct answer.

Key Concept

Development of Industrial Capitalism and Transnational Businesses
Estimated Time:1m 30s
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