1. The coming of the depression Flashcards
what is meant by ‘competition from abroad’?
during 1920’s competition increased, they were bigger so lower prices.
what were the UK’s main industries?
How profitable were they?
Coal, steel, iron, shipbuilding and textiles.
these were only profitable when sold to world wide markets.
Policy of free trade
implemented in 1920’s. allowed foreign goods into Britain freely
British companies usually had to pay to export goods
why did traditional industry begin to decline
Competition from abroad, new markets, obsolete methods
how did new markets lead to decline of traditional industry
New markets were difficult to find.
Shipbuilding worst hit, now one was buying goods so ships weren’t needed for transportation.
how much shipping was built in 1933 compared to 1930?
1930 - 1,400,000 tonnes built
1933 - 133,000 tonnes built
how did obsolete methods effect traditional industry
USA introduced new methods of production in 20s, Britain was falling behind. British industries slow to move to better methods so competition difficult to beat,
Mass-production copied in many countries
How did the Wall Street Crash effect Britain
‘When America sneezes the world catches a cold’
Exports fell by half between 1929 - 31
trade deficit of £114 mil in 1931, prev. £104 mil surplus in 1928
unemployment reached 2 mil in 1930 an d3 mil by 1932
