69novels Chapter 629
Chapter 629
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The reason why he said this was, on the one hand, to let Chukir tell the weakness of the Eagle Sauce, and on the other hand, he also hoped to use this to threaten the other party to open the colonial market of the sun never sets, which is also what the Eagle Sauce people dream of. If they can get it from the hands of the sun never sets without going through the war, it will be a very good ending for them!
Although Chukir was very smart, he did not see through the other party’s intentions. He thought that the other party was bluffed by him, and said triumphantly:”Of course it is related. Your country’s current largest market is the European market. Since the end of World War I, European countries have always been your country’s largest sales market!” After World
War I, Europe was in a mess, and all countries were licking their wounds. In addition, a large number of civilian factories during the war were converted into military factories, making various daily necessities extremely scarce and requiring large-scale imports from North America.
And the Eagle Sauce took this opportunity to dump a large number of goods to Europe and took the opportunity to occupy the European market.
However, the good times did not last long. After the war, as the production capacity of European countries gradually recovered, and the quality of Eagle Sauce’s products had been criticized, Europeans’ demand for Eagle Sauce’s products declined rapidly, and Eagle Sauce’s market share in Europe gradually decreased.
Finally, this economic crisis led to high tariffs in various countries, and international trade almost stagnated. Except for some resources and food necessary for industry and life that were exempted from tariffs by various countries and could be exported slightly, other commodities were almost unsalable!
However, this ending was also caused by the Eagle Sauce people themselves. After the economic crisis broke out in their country, the Eagle Sauce people took the lead in setting up tariff barriers and imposed a large amount of tariffs on imported products from other countries in an attempt to protect their own products.
Because there was no international organization like the WTO World Trade Organization to manage trade disputes between countries at this time, the Eagle Sauce people wanted to increase tariffs, and other countries had no way to deal with them, and it was impossible to stop their behavior!
However, other countries can follow suit and impose tariffs with Eagle Sauce.
Anyway, the Eagle Sauce has imposed tariffs. If they don’t raise tariffs to protect their own products, they will be at a disadvantage when competing with the Eagle Sauce and will face the dumping of Eagle Sauce’s products. The governments of various countries are not fools, and naturally they have chosen targeted retaliatory measures.
So, one stone stirs up a thousand waves. As the Eagle Sauce took the lead in raising tariffs, other countries followed suit. The tariffs of various countries have been greatly increased, causing the cost price of foreign imported goods to rise sharply after paying a large amount of tariffs, and the selling price has also risen!
Some commodities have even risen several times or even dozens of times overnight!
In this case, unless it is something that must be purchased, people will naturally be discouraged by the sudden price increase of imported products, so the goods exported by various countries to other countries quickly lost the market, and international trade declined rapidly.
The decline in international trade, in turn, has once again aggravated the fiscal revenue and national economy of various countries, resulting in the economic crisis of various countries not only not being alleviated, but even further!
At this time, several major powers in the world have their own sales areas.
The British Empire has 33 million colonies, and Hans has conquered more than half of Europe, covering a huge market of nearly 200 million people, so there is no shortage of markets.
The bears in Eastern Europe are still moving from semi-agricultural and semi-industrial to real industrialization at this time. Their domestic market is quite large. Coupled with the blockade of the Allies before and the declaration of war on them by the British Empire and Gaul not long ago, the bears’ foreign imports have stagnated. The products produced by the limited number of factories in their country are not worried about selling at all!
The situation facing the bears now is that a large number of liberated serfs have become workers and entered the factories. Their material needs have increased significantly, and the limited production capacity of the factories cannot meet them at all. Therefore, the current market of the bears lacks products, not overcapacity.
However, even if the bears’ market is very short of goods, it has nothing to do with the Eagle Sauce.
As one of the countries that sent troops to intervene in the bears’ civil war and then imposed economic sanctions on the bears, the bears have no good feelings towards the Eagle Sauce people. If they want to do business, they would rather do business with Hans at their doorstep.
After all, they have been using Hans’ products for a long time. They are of excellent quality and reasonable price. After using them for a long time, they have become accustomed to them! However, the reputation of Eagle Sauce’s products in Europe is very bad. Almost everyone who has used Eagle Sauce’s products sneers at their product quality. Over time, the word-of-mouth effect is produced. Hans’ products are selling better and better, while Eagle Sauce’s products are losing market!
As the initiator, Eagle Sauce, as a major trading country, has suffered the greatest losses because of their own mistakes. They can only swallow this bitter fruit.
Although Roosevelt knew that it was wrong for Eagle Sauce to take the lead in provoking tariff wars and trade protection, he would certainly not admit it publicly.
Besides, this was a stupid move by the previous President Harding.
It would be too unfair for his successor to bear the responsibility!
Moreover, there is a lack of an international trade organization to coordinate the trade of various countries at this time.
As a result, even if Eagle Sauce relaxes its high tariff policy on other countries and no longer imposes high tariffs, it is probably difficult to change the decisions of other countries.
If they abolish the high tariffs and other countries remain unmoved, then they will soon become a dumping ground for other countries’ goods, which is not worth it!
So Roosevelt’s response strategy is: stay put for the time being, and then actively explore new markets and expand the sales of goods, so as to fundamentally solve this problem!
He is targeting two markets, one is the European Union that Hans is integrating!
If this plan is successfully integrated, at least 350 million of the 500 million people in Europe will be under Hans’ control!
This market is probably the largest consumer market in the world!
The Eagle Sauce is still an ally of Hans now. If they can get a share of this market by relying on the alliance relationship, it will be great news for them.
And the other market is the colonial market where the sun never sets!
But it is very difficult to open this market, because these markets are regarded as forbidden by the British, and will not be opened easily.
Originally, in the idea of the Eagle Sauce people, the only way for the British to open these markets is to defeat the British navy through war, force them to surrender, and then disintegrate their colonial system, and then take over this system themselves. In this way, these markets will naturally fall into their hands!