History The Great Depression Questions
The causes of the decline in international trade during the Great Depression were primarily economic and political in nature. The stock market crash of 1929, which marked the beginning of the Great Depression, led to a severe contraction in global economic activity. This resulted in a decrease in consumer demand and a decline in industrial production, leading to a decrease in international trade.
Additionally, protectionist policies implemented by various countries worsened the decline in international trade. Governments imposed high tariffs and trade barriers to protect domestic industries and jobs, which further restricted the flow of goods and services across borders.
The effects of the decline in international trade were widespread and devastating. Many countries heavily reliant on exports, such as the United States, experienced a sharp decline in their economies. Unemployment rates soared as businesses struggled to sell their products abroad, leading to widespread poverty and social unrest.
The decline in international trade also contributed to a rise in nationalism and the breakdown of international cooperation. Countries turned inward, focusing on their own economic problems rather than working together to address the global economic crisis. This lack of cooperation further exacerbated the economic downturn and prolonged the Great Depression.
Overall, the decline in international trade during the Great Depression was caused by a combination of economic factors and protectionist policies. Its effects were far-reaching, leading to economic hardship, unemployment, and a breakdown in international relations.