Chapter 1591: Far Eastern Court (IV.)

The situation in Icewind Dale is almost identical to that of Kitland. The Dwarven royal family of the Far East has a close relationship with the ruling family of Krasbourg, with the Dwarven Lord Bratu Wrought Iron being an old friend who financed Rudolf I's revolution in the Far East, and the Dwarven Prince Bloom being Roland's Iron Buddy. Since the independence of the Far East, Icewind Dale has continued to provide the kingdom of Kolas with hard-working and skilled miners, blacksmiths, road builders, and artillery, as well as armor, weapons, and cannons for the Koras Wehrmacht in exchange for self-sufficient grain and spirits, and Bratu Wrought Iron has no reason to oppose Roland's initiative.

The situation of the North Sea Federation is similar to that of Kitland and Icewind Valley, such as the fact that agricultural output cannot cover the needs of the population, so it has to import large quantities of grain, and the establishment of good relations with the Kingdom of Kolas has brought food security to the North Bay, and the upcoming completion of the Northern Railway has opened up the trade channel from Port Baiou to Krasbourg, which is a great benefit to the North Bay.

There is also something special about the North Sea Federation. Unlike Kitlande and Icewind Dale, which mainly export labor, raw materials, and primary products, the local industry is quite technologically advanced, with iconic industries such as airships, mechs, and magic ships ranking among the top in the entire Varess world. However, the development and growth of these new industries is inseparable from the support of the Kolas Kingdom, and it is all dependent on orders from the Kolas government to maintain a huge industrial chain, and losing this huge market is tantamount to suicide, not to mention that airships, mecha and shipbuilding industries are also absorbing capital from the Kolas Kingdom, Roland has invested in all of the above industries and is the largest shareholder, and the local pride of the airship company, mecha research institute and marine engine factory are actually working for His Royal Highness the Prince.

In addition, the North Bay is currently the most important outlet to the sea of the Kolas Kingdom, and the Bagel Strait is the most important trade corridor of the Meteorite Ocean, and it is the lifeblood of the residents of the North Bay, and this lifeline is precisely in the hands of the Kolas Kingdom. The North Sea Fleet stationed on "Koras Island" is a guarantee to maintain the security of local trade, and the island also has a shipyard of the Kolas Kingdom, a magic locomotive factory and a giant eagle domestication base, in fact, it has been built into a naval base of the Kolas Kingdom, and the Mystic Lock will be established in the future, this island that resists the throat of the North Sea Federation will evolve into an impregnable fortress, and the merchants know the current affairs best, even if it is just from the perspective of doing business, they must hug the thighs of the Kolas Kingdom.

The North Sea Federation is a country based on the union of chambers of commerce, the political structure is relatively loose, and each member city-state enjoys a certain degree of autonomy, and it is natural for the locals to extend this federal model to the entire Far East, as long as they can do business in a down-to-earth manner, what is the difference between "Her Majesty the Queen" and "His Majesty the King"? Moreover, it is well known that Her Majesty the Queen of the North Bay has an ambiguous relationship with Her Royal Highness the Prince of the Far Easterners, and at the latest the day when Lyubov gives birth to a legitimate heir to the North Sea Federation for Roland, it will be logical that the North Sea Federation and the Kingdom of Kolas will merge. The map of the country changed with the marriage and inheritance rights of the monarch, which was not only commonplace in this era, but also had recognized legitimacy.

On the whole, the North Sea Federation and the Kingdom of Kolas are already inseparable on the economic level, and Roland's initiative is nothing more than a posthumous recognition of the status quo, and Lyubov certainly welcomes it.

Parnia is rich in magic crystal resources, and the light industry and shipbuilding industry represented by silk textile are quite developed, but there is a lack of coal and iron resources, and the coastal zone has a thin soil layer, and there are many olive and grape plantations, but it is not suitable for growing cereals. In addition to importing grain, Parnia also needs to use the power of the Kingdom of Kolath to counter the threat from the south and prevent the expansion of the "Order of Naro" in the Twilight Valley.

Beacon Mountain is the center of magical civilization in the Far East, retaining the civilization of the Arcane Age, in fact, its civilization level has surpassed the usual industrial age, but the cost of relying too much on the arcane civilization is too high to promote to the general public, so it does not have the political influence to match its strength. On the other hand, there is a general ambivalence among mages, who want Beacon Mountain to maintain its transcendent status of isolation from the world but cannot completely sever its connection with the secular world, and the existence of the Kingdom of Kolas just satisfies the arrogant mentality of the mages and becomes a window for Beacon Mountain to communicate with the secular world. The Chiefs of the Eight Schools, led by Andre, are happy to see the government of Colas promote their genius inventions, and are also glad that the University of Krasbourg has established the Academy of Arcane Law to provide them with a platform to spread the magical knowledge that has been guarded for thousands of years, and by the way, to discover talents with arcane talents, and to replenish the blood of this ancient arcane city-state.

In this way, Parnia and Beacon Hill are also interdependent with the kingdom of Kolas, and should further strengthen cooperation, so why are there so many doubts about the establishment of a unified market?

Roland's careful observation reveals that the reason is simple: Parnia and Beacon Hill are happy to accept the free movement of capital and goods, but they are suspicious of the free movement of people.

As the Minister of Industry Zinovi and the Minister of Agriculture Jodel feared at the Far Eastern Cabinet meeting, if the borders were opened, would Far Easterners flock to Beacon Hill and Parnia, where wages were higher? The ministers feared that this would lead to a shortage of local workers, forcing business owners to raise salaries to retain workers. Lady Theodora and André also feared that the mass influx of Far Eastern laborers into their territories would rob the locals of jobs and lead to social conflicts.

Is the free movement of labor good or bad? Roland has also pondered this question repeatedly. In the case of the kingdom of Kolas, the establishment of an economic community with five friendly countries does have the potential to lead to an exodus of labor, which in turn will force companies to raise wages.

So what's next?

Do high wages really undermine business competitiveness?

From the historical experience of the earth, the export competitiveness brought about by low wages has indeed been a key factor in the rapid rise of some export-oriented countries with surplus labor, such as Roland's homeland on the earth. But there are also counter-examples, Roland remembers that since the founding of the United States, the wages of workers have been higher than that of the world's largest industrial power at the time, and in the 19th and 20th centuries, American workers generally earned one-third more than their British counterparts. However, high wages did not hinder the industrialization of the United States, but greatly encouraged Americans to devote themselves to invention and development, many new technologies and new machines aimed at saving labor costs.

Is the current situation in the Kingdom of Kolas closer to that of China or the United States? From the perspective of labor supply alone, it is actually closer to the United States. There is a shortage of labour everywhere from farms to factories, and even women workers are in short supply. Had it not been for Roland's resolute opposition, the cabinet would have introduced a bill on the "legalization of child labor".