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�

5.7 �H. ECN�Explain the development of economic systems, ideologies, and institutions and how they contributed to change in the period from 1750 to 1900.�

�SKILL�Making Connections:�Relating two historical developments �

Laissez faire �CAPITALISM

VIDEO #1

Adam Smith

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What we will learn:

Analyze the economic impact of world that is becoming increasingly more industrialized.

Explain the historical relationships between two or more historical developments (rise of corporations + Laissez faire-capitalism).

What we will do:

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AMSCO REVIEW: �TOPIC 4.5 → �Mercantilism�& Commercial �Revolution

Page 233

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Page 233

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Mercantilism

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Laissez faire Capitalism

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A policy of lettings economics take their own course, without government interfering

the laws of supply & demand will efficiently direct the production of goods & services.

Fairest price point for both buyer & seller

PRICE

ADAM SMITH

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TOP HAT

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Global Shift: Mercantilism → Laissez faire Capitalism

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New Practices in Banking & Finance

Stockbrokers invest in many companies at once

Rise of Corporations

Rise of Stock Market

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Page 325

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Page 236

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INTERNATIONAL CORPORATIONS

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Let’s Practice: �Explain how a historical development related to another

First Identify:�Large-scale international corporations. �

What is the connection?�CCOT�CAUSATION �COMPARISON �

Actual AP Exam Prompt: �Explain a change in global production from 1750-1900.

New Type of Business = Change

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Let’s Practice: Creating a Claim�Explain how a historical development relates to another

Actual AP Exam Prompt: � Explain a change in global production from 1750-1900.

Finally, EXPLAIN:

How or why this process is part of a pattern = Change

Changing economic theory:�Mercantilism → Capitalism

Changes in financing:�Stock market fueled capital investments

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Complete sentence

The introduction of large-scale international corporations changed the scope of global economic development. New stockholders from around the world invested in international companies which allowed them to dramatically increase the scope of their production and the scale of available products for consumption.

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Change: Claim in complete sentences

The introduction of large-scale international corporations changed the scope of global economic development. New stockholders from around the world invested in international companies which allowed them to dramatically increase the scope of their production and the scale of available products for consumption.

BREAKDOWN

Identify

Explain