American Business History

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Panama Canal

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American Business History

Definition

The Panama Canal is a man-made waterway that connects the Atlantic and Pacific Oceans, dramatically shortening the maritime route between the east and west coasts of the Americas. Completed in 1914, it represented a monumental feat of engineering and had significant impacts on global trade and transportation technologies by allowing ships to avoid the lengthy and perilous journey around the southern tip of South America.

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5 Must Know Facts For Your Next Test

  1. The construction of the Panama Canal was initially started by the French in 1881 but was ultimately completed by the United States in 1914 after overcoming significant engineering challenges and health issues.
  2. The canal spans approximately 50 miles (80 kilometers) and employs a series of locks to lift ships 85 feet (26 meters) above sea level at the Gatun Lake, before lowering them back down.
  3. Before the canal was built, ships had to navigate around Cape Horn, which added thousands of miles to their voyages and increased shipping time and costs.
  4. The opening of the Panama Canal had a transformative effect on global trade patterns, making it easier and faster for goods to move between Europe, North America, and Asia.
  5. The Panama Canal has been expanded in recent years, with the addition of a new set of locks completed in 2016, allowing larger vessels, known as Panamax ships, to transit through it.

Review Questions

  • How did the construction of the Panama Canal influence global trade and transportation technologies?
    • The construction of the Panama Canal revolutionized global trade by drastically reducing travel time between the Atlantic and Pacific Oceans. By eliminating the need for ships to navigate around Cape Horn, trade routes became more efficient, enabling faster delivery of goods. This shift not only affected shipping companies but also allowed countries to enhance their economic relationships by making it easier to exchange products internationally.
  • Evaluate the engineering challenges faced during the construction of the Panama Canal and how they were overcome.
    • During its construction, the Panama Canal faced significant engineering challenges, including difficult terrain, tropical diseases like malaria and yellow fever, and massive earth-moving requirements. The use of advanced engineering techniques such as steam shovels for excavation and innovative solutions like lock systems helped mitigate these obstacles. The successful management of worker health through improved sanitation measures also played a crucial role in completing this monumental project.
  • Assess the long-term economic impacts of the Panama Canal on maritime trade since its opening in 1914.
    • Since its opening in 1914, the Panama Canal has had profound long-term economic impacts on maritime trade by facilitating quicker shipping routes that have driven down transportation costs. The canal has become a vital link for international commerce, impacting supply chains and encouraging global trade expansion. Additionally, its ongoing expansions allow for larger vessels, adapting to changing trade dynamics and enhancing its role in global logistics even further.
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