There was a growing trend in Howard’s incorporation. With limited liability Corporation, many thousands of middle-class men and women considered corporate investment a safe and financially promising way of making money for themselves.

A stock-holding renter class emerged. The growing influence of bankers and financiers enhanced their power to stimulate or to dis-coverage the growth of particular industries and enterprises. It encouraged a kind of impersonal finance capital. Money available for investment through the institution of finance capital enables the vertical integration of industries.

A second corporate organization formation was the cartel’s horizontal form. These were combinations of individual companies producing the same kind of goods joined the purpose of controlling competition. Defenders of the cartel argued that the elimination of competition brought more stable prices and more continuous employment.

At the end of the 19th century, government and significant business trends developed close working relationships contrary to the laissez-faire theories of early industrial entrepreneurs. First, there was the appearance of business finance as officers of the state.

The interrelationship between government and industry, like the growth of cartels and combines, was Seen as a natural development in the capitalist system, which, its defends argued, was showering its benefits all classes of society.

International Competition: Britain vs. German

By 1914, the U.S. and Germany were out-producing Britain in several areas. German the challenge was significant for the British. Industrial competition with Germany helped reshape international political alliances at the end of the century. Britain, mooning to align itself with its ancient enemy.

France, against the Germans, found itself engaged in a contest of novel superiority with the latter, determined that in that field, the British would not lose their age-old advantages to the upstart challengers. German was a potent threat to the British, even before 1870. Germany had caused to provide a ready market for British manufacturers. The Germans were supplying their own needs.

After 1870, German began to export to the rest of the world. Moving into markets that the British had considered exclusively their own German salesman proctored German goods. There is some Reasons for Britain’s lag are-priority Britain was disabled becomes it was industrialized first, larger siege of German plants, Attitude towards education.