Chapter 638： Financial market (1/2)

With the outbreak of the Second Industrial Revolution, the total industrial volume of all countries has grown like a snowball, and the demand for markets and industrial raw materials is also increasing.

The Vienna government is eager to promote free trade. In addition to its domestic economic development needs, it also has an unspeakable strategic purpose.

Once entering the era of free trade, Austria, which has an advantage in emerging industries, is bound to amplify this advantage and set a higher threshold later.

If it goes well, it will appear in the near future: the British occupy the traditional textile and shipbuilding industries; Austria occupies the world industrial pattern of the emerging power, communications, and internal combustion engine industries.

It can almost be said to replicate the economic rise of the German Empire, but Austria has a thick base and is itself the largest exporter of agricultural products in Europe. It is also backed by a vast colony.

Britain and Austria have divided up the main players in the world's industries. What should the remaining countries do?

In particular, France, after the two countries, has no advantage in either the traditional British competition or the emerging industries with Austria.

It is not technically impossible to keep up, mainly because the supply of industrial raw materials cannot be resolved. Unlike later generations, transportation in this era was less developed. Once the distance is too far, the cost goes up.

It is too risky to defeat France militaryly. France is now a big country with a population of nearly 60 million. Even if the Italians did not contribute militaryly, they could still contribute in logistics.

Two dogs fight, play off.

Unless the war can be ended within a short period of time and the other party is completely destroyed, otherwise the winner is the fisherman.

As long as you look at the map, people with a little military common sense know that France and Austria cannot win or lose in the short term, which is determined by geographical location.

In contrast, in the economic downfall of France, the risks are much smaller and the success rate is much higher.

Economically, Britain, France, Austria and the three countries are all competitors. Even if the London government likes to play continental balance, it can only be military balance. There is no economic way to play balance.

The economies of France and Austria have long been out of balance, and the British have not thought about pulling out the French, which means enemies.

Don't talk about strategy, capitalists don't have such a high degree of discipline. Making money is the number one priority. It can kill a competitor and earn more profits. Why refuse?

No matter how big the threat in Austria is, that is also a future problem. Capitalists cannot give up money for potential danger.

The most typical case is the rise of the former Soviet Union. In terms of threats alone, this is much more horrible than the current Austria, and for the benefit of capitalists, they still cooperate with the Soviets.

In the era of free trade, the economy is determined by the market, and government intervention is relatively small. Take the London government of this era as an example, they hardly interfere in the market.

Needless to say, once Austria joins the free trade system, vested interests will also promote the union of the two governments and pull all the remaining countries into the free trade system.

There is no doubt that most European countries have no confidence to refuse. When everyone joins the free trade system, the French will be in trouble.

Joining the game circle, they are not competitive, if they do not join the circle, they will fall into the awkward situation of a single machine.

Originally, France was excluded from the European continent. Napoleon III worked hard for twenty years before it was reluctantly accepted by everyone. Now the single player is back to the previous state.

Perhaps the British will abandon the free trade system someday, but it is absolutely impossible to give up in support of France. As long as the advantages outweigh the disadvantages, free trade is the sign of the British.

Judging from the current situation, as long as they don't die on their own, the British industry and commerce will be able to maintain competitiveness in the next few decades. This is the heritage of the old industrial power.

...

Franz: ”What's the reaction of domestic public opinion?”

Prime Minister Felix: ”The voices of support and opposition are almost the same, and the two sides are fighting so much that they will not be able to tell the difference in a short time.”

Supporting free trade is not only emerging industries, but also agricultural products processing industries. They are all Austria's advantageous industries and have sufficient confidence to participate in international competition.

Joining the free trade system and reducing import and export tariffs, these industries are vested interests.

Some people profit, and others have their interests damaged. For example, the cotton industry is the most staunch opponent. Once the tariff barriers are abandoned, the British will inevitably rob some of their markets.

Of course, if these companies are competitive enough, they will also have the opportunity to go out and grab the British market. After all, the technological content of these industries is relatively low, and the technological gap between everyone is not large.

If the labor cost is not higher in Austrian Africa, it is estimated that the domestic cotton textile industry will move. Once entering the free trade era, controlling costs has become an indispensable part of enterprises.

Franz: ”Then provide them with a platform for supporters and opponents to debate and eat ... people will judge.”

Originally, Franz wanted to say ”the people who eat melons”, but he just talked to him, and felt that it was out of place, and he changed to ”the people” in time.

”Your Majesty, I'm afraid it will make it worse. Many people have applied to the police station for demonstrations.” Prime Minister Felix advised