Idea of economic liberalism promoted growth of nationalism in countries like Germany and Italy which were divided into various small principalities. Due to political division, there countries did not act like a unified market. Hence, businesses had to variety of taxes if they wanted to transport goods from one region to another. This was against the idea of economic liberalism which favours free markets. Businessmen and the middle class therefore started favouring these countries into one nation so as to realize the idea of a free market.