The World During Great Depression

1. The World During Great Depression Instructor Pacas

2. Aftermath of WWI • Most CIC nations of Europe emerged from WWI with their industrial capacity weakened. • Attempts at economic recovery centered around forcing their colonial possessions to absorb most of the European industrial production.

3. Crisis of 1930’s • When the Great Depression hit Europe was once again plunged into a desperate situation. • This manifested itself in an increase of exploitation of their respective colonies. Forcing these territories to only trade with their European colonizers. • This period also witnessed an increase in competition for new markets globally. • Most European CIC nations also engaged in adopting restrictive tariffs on foreign goods at home.

4. Britain’s The Imperial Preference System 1932 • Britain attempted to alleviate their economic hardship brought by the Great Depression by instituting a trading bloc. • They restricted participation in international trade to only members of the Commonwealth (England and its colonial possessions around the world).

5. Germany and Foreign Trade Restrictions 1934 • In 1934 Germany engaged in strict control of foreign trade. • High tariffs on foreign goods. • Protection of German domestic industry. • Much to the chagrin of the U.S. who sought to dump its industrial products abroad as a viable means to get out of the depression.

6. U.S. Interests-Free Trade • Because U.S. Industry had not been adversely affected by WWI. • But it had been reduced by 50% due to the Great Depression • U.S. sought to bolster their economy by engaging/coercing other CIC nations to engage in free trade. • CIC nations in Europe were protecting their recently revived industry by engaging in the opposite of free trade.

7. Japan as a Temporary Solution • Since Europe was resisting U.S. trade one of the viable options available to the U.S. was to engage in trade with Japan. • U.S. supplied the Japanese with scrap iron and refined oil. • Japan also was a great market for U.S. industrial goods. • Japan itself was engaging in a process of mass industrialization and empire building.

8. Threat to CIC nations from the East

9. In 1931 the Japanese invaded Manchuria in mainland China because they coveted the natural resources in this region to feed their industry. • The Japanese threatened to acquire territory in South East Asia. • Many European CIC nations had colonial possessions in this region

10. If the Japanese became a self sufficient empire in Asia they could jeopardize European and U.S. access to the resources in this region. • They could also monopolize the wealthy markets of this region. • Although the Japanese markets assisted the U.S. to bolster their economy it also threatened U.S. interests in the region if Japan became a self sufficient empire in the region.