Reasons for economic growth 1871-88

Question 1

What are the 6 main reasons for economic growth?

Answer 1

Education
Cartel System
Role of individuals and firms
National resources
Banks
Growing Population

Question 2

2 Industrial companies founded in Germany and what they were

Answer 2

Krupp - production of steel, artilleryx ammunition & other armaments

Benz - the first gasoline powered automobile (car)

Question 3

Evidence for the DECLINE of agriculture

Answer 3

• Fall in prices despite protections
• Poor harvests in 1870 led to reliance on US imports
• New infrastructure exposed farmers to more competition
• Many peasants moved to cities to work in industry
• trade grew for manufactured goods eg. chemicals, machinery, coal

Question 4

Evidence AGAINST decline of agriculture

Answer 4

• Growth of towns and protection = new opportunities for enterprising farmers
• Machinery and fertilisers more available
• More than 4 million acres of land were brought under cultivation between 1880-1900
• 35% of the population worked in agriculture in 1907

Question 5

How economically powerful was Germany? - Key Points

Answer 5

TRADE:
• Manufacturered goods and Imports increased heavily
• ‘Made in Germany’ symbol of high quality across the world
• trade gap filled by ‘invisible savings’ (earnings from abroad that balance payments)
• huge rise in merchant shipping fleet

BANK/MONEY
• By 1914 Germany was the 3rd largest creditor Nation after GB + USA
• Banks invested heavily in industrial research, trade & economic developments

(also GROWING POPULATION & NATURAL RESOURCES)

Question 6

What is a Tarrif?

Answer 6

Blocking other countries from selling products so that there is no lowering of prices of products from home