The
industrial and
financial capitalism The diffusion of the new processes of production propitiated by the inventions and the accumulation of capitals in the industry had lead to an enormous increase of the production. This expansion of the industrial capitalism produced alterations significant the level of the companies. In the truth, the intense use of machines, engines and other modern means of production gradually more demands avultados capitals, that are not to the reach of an only individual. From there that the individual or familiar
companies if have seen supplanted by
societies gradually that congregated capitals of some people. Between these, they assume with preponderant paper the societies for shares, where the
capital is divided by headings that are vendidos to the public, thus allowing the captation of the small savings from there the name of industrial capitalism. · development of the
banking capital and the system of credit is also a basic step for the attainment of great capitals. In the industrialized nations powerful banking societies consist, that put to the disposal of the industry the additions of that this lacked for its investments, or that, then, some enterprise initiatives take they proper. It is to this fusing between the banking capital and the industrial capital that if financial capital calls. · the competition enters the companies of the market leads to an incessant effort in the direction of if producing the costs lowest, to guarantee and to increase the profits. This fact contributes strong for the fenómeno of the capitalist concentration. Through the horizontal concentration some companies of one are combined in one same enterprise group determined productive sector. Through the vertical concentration a regrouping of companies for form is become fullfilled to control all the manufacture phases , since the attainment of the substances cousins until for sale of the end item. With the development of the concentration of companies and the expansion of the banking capital, the production passes to be dominated by one reduced number of great industrial and financial groups, that form the monopolies. Substituting it the law of offers and of the search, the monopolistas companies withhold exclusive of production and venda of products that in accordance with introduce in the market the maximum profit that it to provide. The investments also are canalized for sectors where the profits are more easy, for example the iron ways. monopoly creates itself with the absorption of small companies until the market is controlled for one or more giant companies. These are the extreme forms in that if manifest the monopolista capital. Data that nor always the general económica situation is favorable, the companies most powerful are strengthened for, in crisis occasions, to keep its economic power. They form then trusts, groups of companies with common económica orientation, but that, when associating, true trusts of companies lose independence forming who dominate the markets and that at crisis moments they absorb the small companies. To increase its profits, truts promote agreements between itself, originating the cartels. On the other hand, they had appeared holdings in result of the American legislation against trusts, that if become powerful economic groups. These had for base financial societies that withheld headings of other companies, removing them of the market, emitted for its time proper headings. Until about 1880 the nations of the continental Europe had supported the free competition and had accepted policy of free exchange, that England had obtained to impose in the económicas relations between the states. The difficulties that appear in the end of the century take these countries to follow the opposing way of the proteccionismo. This politics, the one that England if opposed, defends the economy of each country through the increase of the customs duties and therestriction of the importations, that favor the production national.  CURRENCY and Prices The price notion is complex and matters to distinguish between short term, the long stated period, the local price, the national price and the International. The market price is the price of a merchandise in one determined moment and place: it depends on offers and the search at this moment and place. The relative price to some years measures the level to the return of which the market price oscillates; but this average price also varies the long stated period trend long-trend-: this trend can depend on particular conditions as the considered product, for example of its conditions of production; a progress technician can make to lower the price, is about factors of the price that are intrinsically dependents of the considered product: it is the notion of natural price of the classic economists, is the value concept.THE
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