How did the increasing size of corporations in the US up to the 1930s Essay

How did the increasing size of corporations in the US up to the 1930s affect the pattern of ownership What advantages and disadvantages did this pattern of ow - Essay Example Although foreign investment slowed as a result of the First World War, it had being a major advantage up to 1913. For instance 19% of British investments went to the US between 1911 and 1913 (Hobsbawm, 1987 p. 348). Increased profits made it an advantage for American corporations to get bigger in size. It made good sense to concentrate ownership as much as possible (Hobsbawm, 1994 p. 86). The First World War certainly presented leading American companies with advantages to expand their size, markets, and profits. As a consequence of the conflict British and German companies had not been able to export as many of their products to other countries. The drop in exports from the US most success rivals allowed its leading companies the advantage of exporting more goods. Before the US entered the war, its companies took advantage to boost their profits by exporting supplies and munitions to the combatant nations, especially France and Britain. American exports were vital to sustain the British war effort in particular. American entry into the First World War led to an expansion of industrial output, which contributed to the Allied victory and proved advantageous for the growth of American corporations. Once again events seemed to reinforce the belief that the concentration of ownership would be best (Hobsbawm, 1994 p. 85). More effective production techniques made a significant contribution to the expansion of the leading American corporations, as a higher volume of products was produced with lower costs. American corporations led the field in the development and use of mass production techniques, most notably the Ford Motor Company (Brandon, 2000 p. 70). For much of the 1920s the size of the domestic market, the growing affluence of many Americans, as well as the relative low costs of production seemed very advantageous for the expansion of the leading American companies. Arguably mass production led to a more concentrated pattern