Refer to the two sources. Source 1

"These [stock] yards are connected with all the railroads in the west centering in Chicago. The company have twenty-five miles of track. A cattle train stops along the street of pens; the side of each car is removed, and the living freight pass over a declining bridge into clean, planked inclosures, where food and water is quickly furnished them. A large and comfortable hotel furnishes accommodation for their owners; there is a Cattle Exchange, a spacious and elegant edifice; a bank solely for the cattle-men's use; and a telegraph office, which reports the price of beef, pork and mutton from all parts of the world. The present capacity of the yards is 25,000 head of cattle, 100,000 hogs, 22,000 sheep, and 1,200 horses. A town of five thousand inhabitants has grown up in the immediate vicinity of these stock yards.

In some of the yards not less than five hundred beeves are slaughtered daily. Much of this beef is sent in refrigerator cars to the Atlantic cities, while enormous quantities are cooked and packed in cans and sent all over the world.”

US scholar Captain Willard Glazier, writing about his observations of Chicago in Peculiarities of American Cities, 1886

Source 2

Two pie charts of Edward W Byrn's depiction of global steam-to-sail ratios in 1860 and 1894. The left pie chart is labeled 1860. Sailing vessels is 70 percent. Steam vessels is 30 percent. The right pie chart is labeled 1894. Sailing vessels is 20 percent. Steam vessels is 80 percent.

Scholar Edward W. Byrn’s depiction of global steam-to-sail ratios in 1860 versus 1894, published in The Progress of Invention in the Nineteenth Century, 1900

Based on Source 1, how did the expansion of railroad systems alter the modes and locations of industrial production?

It shifted economic power to rural towns near train stops by connecting farming regions with economic opportunities in big cities.
It shifted economic power to small businesses in remote regions by connecting rural entrepreneurs with growing international markets.
It shifted economic power to industrial cities near train stops by connecting manufacturers with the raw materials needed for production.
It shifted economic power to colonized peoples in the transatlantic region by connecting developing countries with one another.