ABSTRACT
The German chemical industry always has had and still has today an important position in the international economy. The history of the German chemical industry, particularly her outstanding firm, the I. G. Farben, was closely connected with this process. The defeat of Germany and the Versailles peace-treaty, which embodied many of the Allies' economic war aims, aggravated the problem of Germany's re-entry into the international economy. The formation of the new joint-stock company required a new organisation because the institutional framework of 1916 was no longer sufficient. The business policy of IG tended to avoid conflicts and competition and instead sought contracts, mutual agreements and cartelization. The company's financial liquidity was not seriously threatened during the depression and the fall in sales was the main determinant of managerial policy. The development of the modern chemical industry in Germany, and not least the growth of I. G. Farben, is regarded as a special feature of German industrialisation and Germany's industrial structure.
