In: Economics
a. Cyrus Hall McCormick, an American industrialist and engineer who is commonly credited with the mechanical reaper 's invention (from 1831). Harvesting required a large number of workers for farmers in the early 19th century, and, if they could be hired, the cost of employing them was high. It gave the promise that the yield of the farmer 's fields would soon not be limited to the amount of labour available when McCormick's reaper was checked on a neighbour's farm in 1831. There were flaws in the machine, not least a clatter so loud that slaves had to step alongside it to appease the terrified horses.In 1834, McCormick took out a patent, but his chief concern at the time was the iron foundry of the family. When, in the aftermath of the bank crisis of 1837, the foundry failed, leaving the family heavily in debt, McCormick turned to and improved his still-unexploited reaper. In 1841, 7 in 1842, 29 in 1843, and 50 the next year, he sold 2 reapers.
b. Suppose a nation is based on building railroads. Two forms of effects exist.
What will we need in order to build railroads? We need steel and iron, engineers, mechanics, etc. Therefore, with the advancement of the iron and steel industry, facilities relating to engineering and mechanics will also expand with the growth of railways. So, this is due to backward linkages i.e. certain industry and facilities will often grow as one improves railways. Now, suppose that railways are established. What are the sectors that, along with railways, will develop? The shipment of goods and raw materials from various factories will be enabled by railways. Almost all sectors will, thus, benefit from it. Railways will therefore assist with transport and will also improve both services and tourism. These are the railway forward linkages.