Identify and explain:

4. role of the enlightenment on new economic theories
6. major effects of new technology on business
7. reason for the emergence of big business during the industrial revolution

4. Role of the Enlightenment on new economic theories

One of the most important enlightenment philosophers was David Hume, he was a Scottish thinker that defended the idea of “free trade”. He believed that borders, tariffs or taxes on imports are against free trade idea and that free trade is a way of increasing the numbers of labor in a nation.

Adam Smith took Hume’s idea and developed it. He believed that if a country wants to have free trade, it needs also political freedom. He defended that the greed that moves people to have free trade also benefits society. He also defended the idea of “Invisible hand” that is a way of the market regulating itself.

6. Major effects of new technology on business

The major effects of new technology on business are:

Technology made communication easier, the business can spread around the world and still be connected through the internet. It also provides a channel of communication between clients and companies.

Technology changed the way business advertise their products. Today there is a business that only do online advertising, online marketing, for example, is totally different than “traditional” marketing. It also permits the company or business to expand the area of promotion and affect people around the world.

Technology also drops costs because in some companies it reduces the numbers of workers that are needed.

7. Reason for the emergence of big business during the Industrial Revolution

The industrial revolution was a period in history that created rapidly technological and economic growth around the US. This period was full of new inventions, the creation of big business, expansion to the west and the rise of cities.

The expansion to the west started with the Transcontinental Railroad, that was created in the 1860s and connected west to the east. To built this road a massive amount of oil, wood, steel, and jobs were needed. This created the perfect scenario to the rise of Big Business like Rockefeller’s Standart Oild Company, Carnegie and others.

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