Childrens Illustrated Encyclopedia

Trade and indusTry

525

Factories

some industry takes place

in people’s homes, but

workers in factories

make most of the

products that we

buy. in a factory

each person has a

small task in the

manufacturing

process. He or

she may

operate a large

machine or

assemble

something by

hand. No one

person makes an

entire product.

this process of

mass production

makes manufacturing

cheaper and quicker.

Most factories are owned by

large companies; a few factories

are owned by governments or by

the people who work in them.

Supply and demand

companies set up factories to produce goods that they think

people will want. they sell the goods at a price that allows the

company to make a profit. as long as there is a demand for the

goods, the factory will continue to supply them. When fewer

people buy the goods that the factory makes, prices drop to try

to attract buyers, and workers in the factory may lose their jobs.

service iNdustries

Not all industries make objects for sale.

some industries provide a service in return

for money. a garage, for instance, might

charge a fee to adjust a car so that

it runs more efficiently. People pay

for this service rather than do the

work themselves.

The restaurant industry

provides the service

of cooking and

serving food.

The engine comes from

a factory in Spain.

The transmission

A French factory is made in Germany.

makes the body

from British steel.

Final assembly of the car

may take place in Spain.

MaNuFacturiNg

the basic form of industry is manufacturing. this

means working on materials to manufacture, or

make, a finished product. almost everything we

use is the product of manufacturing, and most

manufacturing takes place in large factories.

However, craftworkers manufacture goods alone

or in small groups. some goods go through many

stages of manufacturing.

For example, workers

making cars assemble

manufactured

components or parts,

which, in turn, have

been made in many

other factories, often

in other countries.

A factory starts by

making a small number

of umbrellas.

Stores put a few

umbrellas on sale

at a high price.

Many people need

umbrellas and buy them,

increasing demand.

When everyone has an

umbrella, demand for

umbrellas falls.

The factory employs

more people to make

more umbrellas.

Prices drop, and the

factory needs fewer

umbrella workers.

Trade unionS

during the 19th century,

workers began to form trade

unions in order to obtain

better pay and conditions

for members. if the union

is not successful, its

members may go on

strike—stop work—until

their demands are met.

Trade unions in 19th-century America

and Europe had to struggle for many

decades against inhumanly long hours of

work. The eight-hour working day was finally

achieved in the late 1930s.

A modern

car is so complex that

one factory cannot make

every part. So, many factories

build car components, and an assembly

plant puts the vehicle together.

Find out more

depression of the 1930s

industrial revolution

Machines

Money

Plastics

Ports and waterways

US_525_Trade_Industry_2.indd 525 27/01/16 2:39 pm