MGMT 1030 Lecture 12: readings.rtf
20 Jul 2016
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Document Summary
Investment of money in the expectation of making a profit, and huge profits could be made at some considerable risk by long-distance trading ventures of this kind. Markets could also become saturated if the high profitability of the trade led too many to enter. Markets were manipulated by buying up stocks and holding back sales. Impact on society was limited, since profits=trading scarce products, rather than rationalizing production. Example: east india company, trading spices and fabrics with the dutch only some people went over in the boat to foreign countries to obtain these spices to sell at profits. Competitive industry since high profits=expansion and new entrants. Technical advances enabled huge increases in productivity=companies investing in machinery. However, during the 1830"s, costs of heavy machinery and downward pressure of increased capacity depressed the industry"s profitability to low levels. New industries were merging to exploit and develop the leisure market=huge source of consumer demand, employment, and demand.
