What was the impact of the First World War on the British industries ?

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What was the impact of the First World War on the British industries ?

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  1. Answer: Post-war economic recovery proved difficult for Britain:
    (a) While Britain was preoccupied with war, industries developed in India and Japan. After the war, Britain found it difficult to recapture its position of dominance in the Indian market and to compete with Japan internationally.
    (b) Britain had borrowed liberally from the US to finance war expenditures. At the end of the war, Britain was burdened with huge external debts.
    (c) The war had led to an economic boom that is a large increase in demand, production and employment. When the war ended, production contracted and unemployment increased.
    (d) At the same time, the government reduced bloated war expenditures to bring them in line with peacetime revenues. These developments led to huge job losses in 1921 one in every five British workers was out of work.

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