main causes of depression

Question 1

what are the concepts?

Answer 1

1920- lack of investment in industries and cost of ww1 left Britain having economical rivals e.g America and Japan (new methods of production)

Question 2

why was there competition from abroad?

Answer 2

British industries had not changed since early 20th century
competing counties sold coal, iron, textiles and shipbuilding more efficiently and cheaper

Question 3

what happened during the wall street crash?

Answer 3

-great depression fell across Europe
-Britain business confidence fell; international trade declined
-1929-1931 exports fell by half
-1931- trade deficit £114 million (£104 million in 1928)
-unemployment rose (2million in 1930 then 3million in 1932)

Question 4

why were people finding new markets?

Answer 4

-British products too expensive
-government trade policy- allowed foreign goods to come in for free so people would have access to cheaper foreign goods
-Britain had to pay to export goods; products even more expensive

Question 5

Why weren’t Britains methods of selling goods economically efficient?

Answer 5

-Britain had no up to date machinery making to difficult to mine so the coal was more expensive
- foreign steel making plants wee bigger than British plants