UCOR 2000 Final essay q 1

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1. Describe

and analyze the experience of the Great Depression between the industrial

nations and the primary producing nations. What parts of the world were most

affected and what parts were least affected? What would be the economic

explanation for this difference?

Germany and the U.S. were most affected and both reached 30% unemployment in 1932.

Germany owed money to "winning" nations after WWI and their imperial government had collapsed.

U.S. loaned money to Germany, as well as Britain and France.

U.S. made more products than they could sell in the late 1920's, their main buyers being those of European nations.

U.S. banks closed, savings were lost.

American stock market crashed and World trade market dropped by 62%.

Colonial Southeast Asia, who was the major rubber producing region, saw it's main export drop dramatically (world trade market).

In British Africa, cocoa prices dropped (world trade market).

Latin America, also faced a similar economic crisis and Brazil actually had to destroy their coffee crops.

Mexico as well as Latin America took drastic revolutions to change their economy and relied heavily on military force, local trades instead of foreign imports, and an authoritarian government.

Soviet Union and China took on a communist government while Britain, France, and Scandinavia took on "democratic socialism".

Japan was least affected because their involvement was minimal and after WWI, it's economy grew as well as their land expansion.

Japan however did face economic crisis in 1929 when their exports fell by half leaving many unemployed.