Question

Which of the following events led to the collapse of the British economy post World War I?

• A. Native industrialists of British colonies failed to establish their industries.
• B. British cotton cloth exports fell drastically.
• C. Britain modernised its economy well.
• D. Manchester struggled to regain its old position in the Indian market.

Answer 1

Answer: (B), (D)

Manchester struggled to regain its old position in the Indian market.

Once the World War was over, Manchester struggled to regain its old position in the Indian market. Britain struggled to modernise its economy and compete with the US, Japan and Germany. As a result, the British economy collapsed after the war. Production of cotton dropped and British cotton cloth exports fell drastically. In the colonies, local industrialists slowly strengthened their position.