Bismarck Economic Changes

Question 1

What is Regulation?

Answer 1

The imposition of rules by a government on economic activity. Ie health and safety, environmental impact, higher taxation

Question 2

What is Urbanisation?

Answer 2

The increase in the proportion of people living in towns and cities compared to rural areas

Question 3

What is GNP?

Answer 3

Gross National Product
Total value of all goods and services of a country, within its borders + abroad

Question 4

What are Cartels?

Answer 4

A combination of independent business organizations formed to regulate production, pricing, and marketing of goods by the members.

Question 5

What are Exports?

Answer 5

Selling goods and services abroad

Question 6

What are Imports?

Answer 6

Goods or services brought into one country from another

Question 7

What is Industrialisation?

Answer 7

The development of industries on a wide scale,

Question 8

What is Balance of Trade?

Answer 8

The difference in value between a country’s imports and exports
If the value of the imports is above that of the exports, the balance of the payments has a deficit that is often referred to as being in the red.

Question 9

What were the Causes of Economic growth in Germany- 1870 onwards?

Answer 9

• Population growth, increased workforce and market for manufactured goods. Increased younger population, more mobile and willing to learn new skills
• Ample RAW MATERIALS: ie Coal from the Ruhr, Iron ore from Alsace-Lorraine + the Ruhr
• Rivers + flat northern plains good to build railways on
• World-renowned education system providing a skilled workforce. 1870: more science graduates at Munich university than total number of science graduates from all English universities
• Unification + 1878 tariffs introduced
• Expansion of banks free from regulation, encouraging investment + a close relationship between banking and industry
• Development of chemicals and electricals ie synthetic dyes, artificial fibres, photographic materials, drugs, plastics and explosives
• Expansion of overseas trade- provided market for expanding German industry

Question 10

Where did German supplies of Coal and Iron come from?

Answer 10

• The Ruhr: MAJOR INDUSTRIAL AREA OF GERMANY

Question 11

Why was there less transport of Coal and Iron?

Answer 11

heavy, so more expensive to transport

Question 12

How were they able to transport coal and iron around Germany?

Answer 12

Rivers: capable of holding large barges, help to transport coal + iron
Major ports: Danzig, Hamburg

Germany is flat, easy to build railways, transport systems, walking