How did American and European firms differ? Who was in a better position and why?

American and European firms differed in that in the 18th and 19th centuries, capitalism and democratic freedoms were most pronounced in the countries of the New World. More affordable conditions have appeared there for companies. In America, after the Civil War and the War of Independence, new rules and social orders were established that allowed factories to use hired labor and increase capital. In addition, strong links between domestic and foreign markets were formed in America, so they received much more income.