The economy of the North was based on manufacturing. Many immigrants from Europe began working in factories and producing goods used by people in the North. Many factories began producing textiles (cloth) with the cotton grown in the South. The economy of the South was based on agriculture.
Conflict in the Middle East disrupted U.S. exports to that region, an important part of the economy. C. Conflict in the Middle East disrupted energy markets, causing high oil and gas prices in the United States
