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The American enterprises, and other simultaneously acted, not less important Process: expansion of a set of functions of each separate enterprise. Here Explanations are necessary. The industrial enterprises can execute or Independently, or resorting to services others following function, each of Which are included by set of minorant functions:
+ Designing, product working out;
+ Production of raw materials;
+ Production of half-finished products;
+ Assemblage of a ready product;
+ Sales in the local or regional markets;
+ Sales in the national market.
The size of the enterprise partly depends on that, however many of these functions it
Executes independently. Still in a greater degree an enterprise efficiency
It is defined by that, however reasonably it has chosen for itself a suitable set of functions.
We will return to a question on the factors defining the size of the enterprise, in chapter 9.
1. Assemblage, production of half-finished products and raw materials
Quantity production has caused fast a growing demand for all kinds of raw materials and
Half-finished products. It was not new. During a XIX-th century the British textile
The industry as we saw in chapter 5, has increased demand for a clap in
Sixty times. Supply of branch by a clap was carried out by dealers of Liverpool and
To subordinate to itself clap cultivation.
In the end of a XIX-th century a number of industries in the United States differed from
The British textile industry that at their order was not
The reliable, competitive markets on which it would be possible to purchase all
Necessary raw materials and half-finished products. Sometimes an exit became vertical
Integration - that is submission to itself of raw materials production. In production
Nonferrous metals there was usual a connection of extraction of ore and metal reception, and
The same practice has extended in production of a steel and in oil refining in
Result of sharp increase in demand for raw materials new oil refining and
Steel foundries. The account of travelling costs has divided national and
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