Jauerfood
Encyclopedia
Jauerfood was a company founded in 1956 in Copenhagen
, Denmark
, by Gunnar Jauer. Jauerfood's primary focus was to supply East German residents with food, bought via Jauerfood and paid by friends and relatives in the West or by the East German residents' West German
savings and bank accounts.
From 1959 and on East Germany did not allow its citizens to withdraw their funds put in West German Banks, hence many East Germany citizens had substantial savings that they could not utilize. Jauerfood (and the Swiss, Zürich-based company Palatinus) agreed with the East German Trade association Genex to export goods into East Germany, in return for a 5% commission to Genex.
Through the 60's 70's and 80's, the trade grew: in the last fully operative year 1988 - just before the Wall fell, Jauerfood's gross earnings was approximately 175.000.000 US$.
By the end of 1989, the company's reason for being had vanished, due to the new open structure in Germany, opening East Germany up to free trade
.
Copenhagen
Copenhagen is the capital and largest city of Denmark, with an urban population of 1,199,224 and a metropolitan population of 1,930,260 . With the completion of the transnational Øresund Bridge in 2000, Copenhagen has become the centre of the increasingly integrating Øresund Region...
, Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
, by Gunnar Jauer. Jauerfood's primary focus was to supply East German residents with food, bought via Jauerfood and paid by friends and relatives in the West or by the East German residents' West German
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....
savings and bank accounts.
From 1959 and on East Germany did not allow its citizens to withdraw their funds put in West German Banks, hence many East Germany citizens had substantial savings that they could not utilize. Jauerfood (and the Swiss, Zürich-based company Palatinus) agreed with the East German Trade association Genex to export goods into East Germany, in return for a 5% commission to Genex.
Through the 60's 70's and 80's, the trade grew: in the last fully operative year 1988 - just before the Wall fell, Jauerfood's gross earnings was approximately 175.000.000 US$.
By the end of 1989, the company's reason for being had vanished, due to the new open structure in Germany, opening East Germany up to free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
.