International business in the First Industrial Revolution

The chapter explores how the First Industrial Revolution transformed international business through technological and institutional innovations. Key developments included steam-powered transportation (railways and steamships) and communication technologies like the telegraph, which dramatically reduced travel times and information costs. These technological advances facilitated unprecedented global interconnectedness. Mass migration became possible, with millions of Europeans relocating to the Americas and other regions. Simultaneously, institutional changes, particularly the expansion of imperial networks and increasingly liberal trade policies, further supported global economic integration. The chapter highlights three critical transformations: entrepreneurial migration, information and communication revolution, and input mobility. Capital became increasingly transferable, with British investors leading global investment flows. Commodity markets became more integrated, with price convergence across different regions. The period saw a radical shrinking of the world, creating new opportunities for trade, investment, and cultural exchange. By reducing barriers of time and distance, these innovations laid the groundwork for modern globalisation, fundamentally changing how international business was conducted.