Question

Difficulty: EasyDevelopment of Industrial Capitalism and Transnational Businesses

“By establishing factories in local markets, such as our massive works in Kilbowie, Scotland, the Singer Manufacturing Company bypasses costly tariffs and transport fees. Our agents sell machines on the installment plan to households and workshops across Europe, Asia, and South America, directed from our executive offices in New York. This global network of production and sales ensures that the modern sewing machine becomes a household necessity worldwide.”

—Singer Manufacturing Company, corporate circular, circa 1890

Which of the following developments in the nineteenth century does the passage best illustrate?

  1. A
    The reliance on direct political administration and territorial annexation of foreign markets.
  2. The growth of transnational businesses that operated across national borders.Answer
  3. C
    The continuation of mercantilist policies to maintain state-controlled trade monopolies.
  4. D
    The implementation of Marxist reforms to share factory profits with industrial workers.

Answer

The growth of transnational businesses that operated across national borders.
The correct answer is correct because the passage describes the global operations of the Singer Manufacturing Company, which was headquartered in New York, produced goods in Scotland, and sold them across several continents. This structure is a classic example of a transnational business, which emerged during the nineteenth century as industrial capitalism integrated global markets.

Step-by-Step Solution

1
Analyze the provided historical stimulus.
The text describes a company based in New York that has set up manufacturing in Scotland and sells products globally using localized agents.
This establishes that the business operates across multiple national boundaries for manufacturing, administration, and distribution.
2
Identify the historical term that matches this pattern of business organization.
A business that operates in multiple countries and coordinates production or services from a home office is a transnational business.
This links the historical details of the Singer Manufacturing Company to the broader conceptual framework of the AP World History curriculum.
3
Evaluate the choices to find the one matching this economic development.
The development is the growth of transnational businesses that operated across national borders.
This directly demonstrates mastery of the target learning objective regarding industrial capitalism and transnational companies.

Key Concept

The rise of transnational businesses during the era of industrial capitalism.
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