German economy
- Created by: Abigail
- Created on: 15-11-13 18:38
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- each state within the confederation controlled its own economy
- there were dozen upon dozen of custom barriers - this heavily restricted trade
- toll booths were even added onto roads to get into another part of the confederation
- there were lots of different currencies and value for each of the money - taxation was enforced for people who changed into a different area with a new currency
- this as well caused a great trading problem
- Rhineland manufacturers complained about the trading problems
- they also complained about their competition
- in 1818, the previous Prussian Tariff Reform Law became the Prussian Customs Union
- this allowed the complex system of internal customs to be abolished
- a replacement was brought in instead just being on the Prussian boarder
- industrialists wanted protection on their goods against the British
- if tariffs were higher, smuggling would have been encouraged as well as the black market
- however, Prussia could not raise the tariffs because they weren't economically or politcally strong enough like Britain was
- custom duties on raw materials were introduced, like tea and sugar, to protect against foreign competition
- Prussia hoped to extend free trade with others
- goods could move more freely if internal trade barriers were removed
- after a while, Prussia's neighbouring states joing the PCU after being impressed by them
- Prussian offices being…
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