Production capacity in Britain and the United States was improved by the invention of the cotton gin by the American Eli Whitney in 1793. Before the development of cotton gins, the cotton fibers had to be pulled from the seeds tediously by hand. By the late 1700s a number of crude ginning machines had been developed. However, to produce a bale of cotton required over 600 hours of human labor, making large-scale production uneconomical in the United States, even with the use of humans as slave labor. The gin that Whitney manufactured (the Holmes design) reduced the hours down to just a dozen or so per bale. Although Whitney patented his own design for a cotton gin, he manufactured a prior design from Henry Odgen Holmes, for which Holmes filed a patent in 1796. Improving technology and increasing control of world markets allowed British traders to develop a commercial chain in which raw cotton fibers were (at first) purchased from colonial plantations, processed into cotton cloth in the mills of Lancashire, and then exported on British ships to captive colonial markets in West Africa, India, and China (via Shanghai and Hong Kong).
What business development did the British use to establish a hold on the global cotton market?
commercial chain