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Question
- why was it difficult to build new businesses in the south?○ there were no raw goods available.○ there were not many banks to finance businesses.○ there was no demand for products.○ all of the raw goods were shipped to the north.
Brief Explanations
In the post-Civil War or pre-industrial South, the economic structure was heavily focused on producing raw goods (like cotton) for Northern industrial centers. This meant raw materials were exported out of the South, leaving few local resources for new businesses, combined with limited financial institutions and a smaller local consumer base for manufactured goods, making all factors contribute to the difficulty of building new businesses.
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All of the raw goods were shipped to the North.