Question

Describe the impact of first world war on world economy

Answer 1

Dear Student
Answer to your question is as follows :

(1) After the First World War, Britain lost its earlier position of dominance in the Indian market, and internationally it failed to compete with Japan whose economy was growing higher.
(2) Moreover, to deal with war expenditures, Britain had borrowed liberally from the US. This meant that, at the end of the War, Britain was under huge external debts.
(3) The War gave rise to an economic boom, that is, a huge increase in demand, production and employment. When the war boom ended, production went down and unemployment increased.
(4) At the same time, the British government reduced unnecessary war expenditures stream line with peacetime revenues. These developments led to huge job losses.

​​​​​​​Regards