great depression- effect on the world

Question 1

What caused the great depression?

Answer 1

SBOD!!
1. Stock market crash: 1929, massive decline in stock prices, sparked wave of panic selling

2. Banking crisis: collapse of numerous banks made risky loans and ppl heavily invested in stock market
3. Overproduction and Underconsumption: rapid increase in industrial production in 1920s, BUT wages didn’t keep pace with growth of economy… surplus of goods that couldn’t be sold
4. Drought and agricultural crisis: DUST BOWL after 1930s severs drought in Great Plains devastated agricultural industry, made economic crisis worse

Question 2

How did the Great Depression affect Europe’s economy and politics?

Answer 2

1. high levels of unemployment, inflation, and poverty.
2. political instability and the rise of extremist political parties (Nazi Party in Germany and the Fascist party in Italy)
3. Led to outbreak of WW2

Question 3

What was the impact of the Great Depression on the economies of Latin America?

Answer 3

1. relied on exports of raw materials and agricultural
   products, and the global economic downturn led to a decrease in demand for these
   goods.
2. As a result, many Latin American countries experienced high levels of
   unemployment, inflation, and social unrest.
3. Great Depression also led to increased
   economic nationalism and protectionism in the region

Question 4

How did the Great Depression contribute to the rise of fascism in Europe?

Answer 4

1. The Great Depression contributed by creating
   political instability and economic hardship.
2. Many Europeans were disillusioned with
   democracy and capitalism, and they turned to extremist political parties that promised
   strong leadership and economic stability.
3. Fascist leaders, such as Adolf Hitler in
   Germany and Benito Mussolini in Italy, gained popularity by blaming economic crisis on minority groups and advocating for aggressive foreign policies

Question 5

What effect did the Great Depression have on Asia’s agricultural economies?

Answer 5

1. Particularly in countries such as China and India, many farmers experienced a decline in
   income and struggled to make ends meet, led to increased rural-to-urban migration
   and social unrest.
2. contributed to the rise of nationalist
   movements in Asia, as many countries in the region sought to reduce their dependence
   on exports and develop their domestic industries.

Question 6

How did the Great Depression lead to increased government intervention in the economies of
the United States and Europe?

Answer 6

1. Due to the severity of the economic crisis,
   Governments implemented policies such as public works programs, social welfare
   programs, and monetary policies to try to stimulate economic growth and provide relief to
   those impacted by the economic downturn. **marked a significant shift
   in economic policy and the role of the government in the economy.

Question 7

What was the impact of the Great Depression on the global trade system?

Answer 7

1. countries implemented protectionist policies, such as high tariffs and import
   quotas, to protect their domestic industries from foreign competition.
2. led to a decline
   in international trade and a breakdown of the global trade system.
3. also contributed to the rise of economic nationalism and the fragmentation of the global
   economy.

Question 8

How did the Great Depression exacerbate social and economic inequalities in the United
States?

Answer 8

1. Many Americans lost their jobs and were unable to provide for their
   families.
2. also disproportionately impacted minority groups, such as
   African Americans and Mexican Americans, who faced discrimination and limited job
   opportunities.
3. led to increased government intervention in the
   economy and the establishment of social welfare programs, which aimed to address
   some of these inequalities.

Question 9

What were the consequences of the Great Depression for the international monetary system

Answer 9

1. Many countries abandoned the gold standard and established fixed
   exchange rates to stabilize their currencies.
2. also led to the
   establishment of international organizations such as the International Monetary Fund
   (IMF) and the World Bank whcih aimed to promote global economic stability and growth