Topic 1: The coming of the Depression

Question 1

What was the Wall Street Crash?

Answer 1

The Wall Street Crash was the collapse of the US Stock Market, in October 1929.

Question 2

What was the Great Depression and how was it caused Worldwide?

Answer 2

The Great Depression was a Social and Economic slump from rising employment and business collapse. It was caused directly from the Wall Street Crash.

Question 3

What were the main reasons for the decline of Tradition Industry in Britain?

Answer 3

1. Competition from abroad
2. Finding new markets
3. Obsolete methods

Question 4

How did competition from abroad cause industry decline in the UK?

Answer 4

The larger competition were able to sell products to worldwide markets for much cheaper, which meant that Britain’s companies were not profitable.

Question 5

Why did the lack of new markets contribute to the decline of industry in the UK?

Answer 5

The lack of free markets meant the UK were restricted in what they sold and who they sold the products too.

Question 6

How did industry’s obsolete methods contribute to the decline of industry in the UK?

Answer 6

Methods such as mass production were being used in rival countries, so the other countries were able to produce products more efficiently and in larger quantity for lower prices. Britain also didn’t adapt to new markets such as chemicals, rayon and automobiles.

Question 7

Define Free Trade and what it meant for Britain’s economy.

Answer 7

The UK had a free trade policy in the 1920’s which removed tariffs from imports and exports to the country, however these taxes were not implemented for certain elsewhere, which meant to trade internationally there would be a cost for the company.

Question 8

Define Import Duties.

Answer 8

The tax on foreign goods brought into a country.

Question 9

Define Mass Production.

Answer 9

The manufacture of large quantities of one product using modern machinery and methods.

Question 10

What is a production line?

Answer 10

A production line is a method of industry layout which allowed one person to be assigned to a particular part of construction. This allowed for better efficiency and less employees to pay.

Question 11

What lead to the Wall Street Crash?

Answer 11

The collapse was due to the loss of confidence in the financial markets which meant people began to panic and sold their shares so the system collapsed.

Question 12

What were the immediate effects of the Wall Street Crash?

Answer 12

• Banks collapsed because loans were not repaid

- Businesses went bust because of high unemployment

Question 13

What was the instigator for the Great Depression in Britain?

Answer 13

America asked for the UK’s loans to be repaid immediately and they stopped lending money, which added to the pre-existing issues.

Question 14

What economic impacts were a result of the Wall Street Crash in Britain?

Answer 14

• International trade declined
• Exports from Britain halved from 1929 to 1931
• Britain began to import more than export
• Unemployment climbed to 2 million in 1930 and rose to 3 million in 1932

Question 15

What is an import or export?

Answer 15

Goods and services sent or received to and from foreign countries.

Question 16

What were Britain’s major industries?

Answer 16

• Coal
• Textiles
• Iron and Steel
• Shipbuilding

Question 17

How was the coal industry effected by the Great Depression?

Answer 17

Coal was produced much more cheaply abroad because of a lack of infrastructure and equipment. Germany began paying war reparations in coal too.

Question 18

How was the Textiles industry impacted by the Great Depression?

Answer 18

Manufactured fibres became more popular than wool and cotton, and there was cheaper cotton available from India.

Question 19

How was the Iron and Steel Industry impacted by the Great Depression?

Answer 19

There was less demand because shipbuilding declined. The USA and Japan undercut prices regularly as they were modernised.

Question 20

How was the Shipbuilding industry impacted by the Great Depression?

Answer 20

Shipbuilding declined as the international disarmament commenced, and less ships were needed. USA and Japan produced ships for cheaper.

Question 21

What are war reparations?

Answer 21

Reparations is the compensation for damage paid by the defeated country.

Question 22

What was the international disarmament?

Answer 22

The disarmament was the de-escalation of war from its conclusion in 1918. The countries participating began to dwindle their army equipment and intake due to a lack of demand.

Question 23

Why were the effects on industry so severe on Britain?

Answer 23

The industries, and indeed the economy, relied on exports to function.

Question 24

What were the unemployment rates in Britain in 1928 compared to 1932?

Answer 24

6.6% in 1928 up to 14.7% in 1932.