The Financial Infrastructure Of The Industrial Revolution

The financial infrastructure that allowed Western Europe to rise to prominence during the Industrial Revolution was mainly created during the 16th, 17th and 18th centuries. During this period, one saw financial innovations including the creation of basic banking systems and the arrival of multinational firms. In this essay, Carlos and Nicholas’ Early Chartered Companies: Analogues of the Modern Multinationals will be analyzed along with Liam Brunt’s Rediscovering Risk: Country Banks as Venture Capital Firms in the Industrial Revolution in order to further understand the similarities and differences between country banks and joint-stock companies as well as to see how the financial foundation was built in the era that became the industrial revolution. In order to clearly compare and contrast country banks and joint-stock companies, it is first imperative to define them. Research by Haber, Maurer, Lamoereaux, Temin and Voth show that country banks provided a lot of the same services that modern banks do, including â€Å"taking deposits and making loans† as well as â€Å"offering safety deposit services, means of remittance, and holding and trading securities for clients.† On the other hand, joint-stock companies or ‘chartered companies’ were early trading companies that allowed retail (individual) investors to buy and sell shares of a firm. While on the surface, the two ideas seem vastly different, there were many commonalities between them. One common theme between country banks andShow MoreRelatedThe Industrial Revolution in Europe1217 Words   |  5 Pagesliberalism, the enlightened age, Infrastructure, and the economic climate allowed Great Britain to seek new job opportunities and exploit new business ideas. In addition, literacy, public education and the middle class was rising immensely. 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