Economic Developments 2 Flashcards
Info NOT on spec
1
Q
How much of the population were still employed in agriculture in 1907?
A
35%
2
Q
What did the agriculture industry need in order to flourish?
A
protection
3
Q
What did protection help with?
A
- preventing cheap American and Russian grain from flooding the German market
4
Q
What is a negative of having heavy protection on agriculture?
A
high food prices
5
Q
What were some challenges that farmers faced?
A
- synthetic foods
- new processes
- refrigeration
6
Q
What happened as a product of the labour supply?
A
- costs rose
- new products (fertilisers, and machinery) became essential
- rural debt increased
7
Q
What did Bismarck do in 1870 due to the state of the German economy?
A
- economy appeared strong enough to withstand foreign competition
- supported free trade policy
8
Q
What demands were introduced after years of slow growth?
A
protection & economic pressure groups emerged
9
Q
What was the 1871 currency reform?
A
- replacement of the currency of the different German Lander by one system of coinage backed by gold
- allowed investments in the industry easier
10
Q
What is GNP?
A
Gross National Product
11
Q
What is the purpose of GNP
A
to measure the strength of an economy
