The British South Africa Company, incorporated under a Royal Charter in 1889, was established to develop the resources of Southern Africa, construct railways, and promote trade. By raising capital from investors in London, the company operated across southern Africa, bypassing local state borders to establish a vast mineral-extraction and commercial network.
The business model described in the passage best illustrates which of the following economic developments of the late nineteenth century?
- AThe dominance of mercantilist policies that prohibited private investment in colonial ventures
- BThe shift toward direct political administration of all colonized regions by European governments
- The growth of transnational businesses that relied on global flows of capitalCevap
- DThe reliance on early industrial technologies like steam-powered textile mills to extract mineral wealth
Cevap
The growth of transnational businesses that relied on global flows of capital
The correct answer is that this model illustrates the growth of transnational businesses that relied on global flows of capital. The British South Africa Company raised investments in London to fund mining and railway construction in Africa, bypassing local borders to operate transnationally.
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Anahtar Kavram
Development of Industrial Capitalism and Transnational Businesses