The refund of duties paid – such as the tax on sugar – when the goods are sold abroad. – If the draw-back is higher than the amount actually paid, an export bonus is created. Thus, in the mid to late 19th century, German sugar cost far less abroad than it did at home. The result was that certain goods – such as candies [CH: Zelti], chocolate, jelly, confectionery [CH; Guetzli], jam [CH: Gonfi, Gumfi], cookies, marzipan, pralinés – from neighboring countries could be offered very cheaply in Germany. The domestic processors of expensive sugar could not keep up with these prices and were driven into bankruptcy in droves. Banks had to write off loans to these companies. – This is also referred to as reverse dumping: if a raw material is sold abroad at below market prices, the goods produced with it flow back into the country cheaply, driving the domestic producers burdened with the higher raw material prices to ruin.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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