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(Trade creation effect)

- , ( : )
-
- ex) - FTA A , A .
. A
, .
.
- B , B , FTA /
, B . '' .
- ?? , A 100, 90 .
FTA : A 20% , A 108 , 100
.
FTA : A , A 90 , FTA
. A .

* (Trade diversion effect)


-
. ( : )
-
- ex) - FTA 1 , 1
.( FTA 1 )
, FTA
,
.
-
.
: B,C X 90, 80 .
A B,C X 20% , C X 96 B
108 C X .
A, B , B X 90 B X C
X .
C X
.

- (Richard Lipsey) .

*
-

Another institution key to unifying the German states, the Zollverein, helped to
create a larger sense of economic unification. Initially conceived by the Prussian
Finance Minister Hans, Count von Blow, as a Prussian customs union in 1818, the
Zollverein linked the many Prussian and Hohenzollern territories. Over the ensuing
thirty years (and more) other German states joined. The Union helped to reduce
protectionist barriers among the German states, especially improving the transport
of raw materials and finished goods, making it both easier to move goods across
territorial borders and less costly to buy, transport, and sell raw materials. This was
particularly important for the emerging industrial centers, most of which were
located in the Rhineland, the Saar, and the Ruhr valleys

The designers at the Congress of Vienna understood that by granting 39


German states autonomy and a voice in the Confederation, the vast multitude
of voices would make consensual agreement a near impossibility. However,
with the formation of a Prussian led customs union in 1834, the Zollverein, the
Inherent inevitability of German unification subsided. Clearly, disagreement
persisted and Austrias reactionary influence within the Confederation
remained substantial; but what now changed was that the Zollverein
Effectively created a common economic interest collectively shared by the
member states. The development towards greater economic integration
Within the German Confederation worried propagators of the status quo. In
1834 the Zollverein consisted of 18 states and some 23 million people; but
By 1848 it already included 28 of the 39 German states. Austria in particular
was concerned, with Metternich suggesting as early as three years before its
creation that this state within a state promoted the highly dangerous idea of
German unity.

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