One thing the Transcontinental Railroad did for the west was eliminating the Oregon Trail. Essentially, you could move to the West (California predominantly) without the hardships, many times death, that came with traveling the Oregon Trail.
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When the railroads were completed, some nativists threatened railroad owners with harm if they hired Chinese people. This resulted in some of the railroads in the west hiring more workers out of Mexico.
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Railroads allowed raw materials to travel to the East, and manufactured goods to travel to the West.