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For much of its early history, what we now know as Germany was a compilation of numerous smaller states, predominantly under the influence of the Holy Roman Empire. By the late 18th century, the economy within these states thrived on river trade, with cities like Hamburg evolving into vital trading hubs. This network facilitated commerce between German states and major European powers, particularly the colonial empires of Britain, France, and the Netherlands.
The demand for manufactured goods created opportunities for German industries, enhancing their reputation for high-quality production, particularly in steel and cutlery.