Economic Impact of WW1
1. how much did the war cost?: The war was very expensive - Britain spent
£145 billion
2. how much did India contribute?: India contributed roughly £146 million to
the war effort and experienced inflation and shortages throughout the War.
3. how much did Britain have to borrow from the USA?: Over $4 billion
borrowed from USA
4. Economic impact of WW1 on Britain: capital investment overseas:
Britain's capital investment overseas had been largely wiped out.
5. Economic impact of WW1 on Britain: manufacturing: British
manufacturing lost ground as a result of the War.
6. Economic impact of WW1 on Britain: borrowing: Britain had borrowed
over $4 billion from the US during the War, over 13 times the cost of the Boer
War.
7. Economic impact of WW1 on Britain: gold standard: The pound sterling
had to be removed from the Gold Standard, because gold reserves were so low.
8. Economic impact of WW1 on Britain: production for war: In Britain,
production for war had been prioritised over business exports, damaging some
industries.
9. Economic impact of WW1 on Britain: domestic companies: As British
manufacturing companies lost ground in the Empire thanks to a slow down in
trade, domestic companies developed.
10. Economic impact of WW1 on Britain: trade rivals: Britain's former trade
rivals took advantage of the slow-down in British exports.
11. Economic impact of WW1 on Britain: financial crisis: Britain experienced
a financial crisis in 1931 that forced the country off the gold standard again.
12. Economic impact of WW1 on Britain: traditional industries: Britain's
traditional industries, shipbuilding, textiles, coal, iron, and steel, slowed down due
to foreign competition.
13. Economic impact of WW1 on Britain: India's trade with Britain: India's
trade with Britain declined due to disruptions to international trade and the growth
of Indian manufacturing.
14. economic impact of WW1 on empire: Australia and New Zealand:
Australia and New Zealand lost money after the War, as Britain was less
financially able to import their food produce.
15. economic impact of WW1 on empire: Banks and financial institutions:
Banks and financial institutions were less able to make money, increasing the
financial burden of the Empire.
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, Economic Impact of WW1
16. economic impact of WW1 on empire: Canada: Canada started to look for
investment opportunities in the US, as Britain was less able to buy from them.
17. economic impact of WW1 on empire: taxes on Indian exports: Britain
placed extra taxes on Indian imports, rising from 11% in 1917 to 25% in 1931.
18. negative effects of the war for Britain:: • The war was very expensive + a
lot was borrowed
• Focus on war effort meant much of Britain's capital investment overseas had
been wiped out
• Pound removed from the gold standard
• Rise in foreign competition one over markets previously dominated by British
exports
• Britain's traditional industries which created income to pay for running and
defending the empire, experienced difficulties
• So did Britain's banks and financial institutions, which generated profits for
lending money overseas.
• Economic burden for the Empire grew, as Britain's ability to pay for it diminished.
• Problem intensified in the 1930s by Great Depression, which saw a collapse of
international trade and market
• Financial crisis 1931 forced Britain off the gold standard again. This reduced
profits from overseas investments.
19. positive effects for the empire: India: In 1914 2/3rds of India's imports
came from Britain, but this fell due to wartime disruption and increased foreign
competition. As a result, Indian manufacturers gained more of domestic market.
Higher taxes on Indian imports - rising from 11% in 1917 to 25% in 1931 -
protected Indian exports against competitors.
20. positive effects for the empire: Canada: Emerged as an industrial power.
British manufacturers lost markets there. Canada increasingly looked to USA for
investment and markets.
21. negative effects for the empire: • India contributed almost £146 million -
inflation and shortages resulted.
• Australia and New Zealand, as exporters of food, relied heavily on the British
market, and consequently were hit hard by the disruption of war
22. What was the economic impact of the war? international trade: - While
Britain concentrated on the war effort, commercial rivals focused on seizing British
markets, particularly in India, the far east and Latin America
- Britain's staple industries were dependent on exports, which suffered e.g.
Japan's
2/7
1. how much did the war cost?: The war was very expensive - Britain spent
£145 billion
2. how much did India contribute?: India contributed roughly £146 million to
the war effort and experienced inflation and shortages throughout the War.
3. how much did Britain have to borrow from the USA?: Over $4 billion
borrowed from USA
4. Economic impact of WW1 on Britain: capital investment overseas:
Britain's capital investment overseas had been largely wiped out.
5. Economic impact of WW1 on Britain: manufacturing: British
manufacturing lost ground as a result of the War.
6. Economic impact of WW1 on Britain: borrowing: Britain had borrowed
over $4 billion from the US during the War, over 13 times the cost of the Boer
War.
7. Economic impact of WW1 on Britain: gold standard: The pound sterling
had to be removed from the Gold Standard, because gold reserves were so low.
8. Economic impact of WW1 on Britain: production for war: In Britain,
production for war had been prioritised over business exports, damaging some
industries.
9. Economic impact of WW1 on Britain: domestic companies: As British
manufacturing companies lost ground in the Empire thanks to a slow down in
trade, domestic companies developed.
10. Economic impact of WW1 on Britain: trade rivals: Britain's former trade
rivals took advantage of the slow-down in British exports.
11. Economic impact of WW1 on Britain: financial crisis: Britain experienced
a financial crisis in 1931 that forced the country off the gold standard again.
12. Economic impact of WW1 on Britain: traditional industries: Britain's
traditional industries, shipbuilding, textiles, coal, iron, and steel, slowed down due
to foreign competition.
13. Economic impact of WW1 on Britain: India's trade with Britain: India's
trade with Britain declined due to disruptions to international trade and the growth
of Indian manufacturing.
14. economic impact of WW1 on empire: Australia and New Zealand:
Australia and New Zealand lost money after the War, as Britain was less
financially able to import their food produce.
15. economic impact of WW1 on empire: Banks and financial institutions:
Banks and financial institutions were less able to make money, increasing the
financial burden of the Empire.
1/7
, Economic Impact of WW1
16. economic impact of WW1 on empire: Canada: Canada started to look for
investment opportunities in the US, as Britain was less able to buy from them.
17. economic impact of WW1 on empire: taxes on Indian exports: Britain
placed extra taxes on Indian imports, rising from 11% in 1917 to 25% in 1931.
18. negative effects of the war for Britain:: • The war was very expensive + a
lot was borrowed
• Focus on war effort meant much of Britain's capital investment overseas had
been wiped out
• Pound removed from the gold standard
• Rise in foreign competition one over markets previously dominated by British
exports
• Britain's traditional industries which created income to pay for running and
defending the empire, experienced difficulties
• So did Britain's banks and financial institutions, which generated profits for
lending money overseas.
• Economic burden for the Empire grew, as Britain's ability to pay for it diminished.
• Problem intensified in the 1930s by Great Depression, which saw a collapse of
international trade and market
• Financial crisis 1931 forced Britain off the gold standard again. This reduced
profits from overseas investments.
19. positive effects for the empire: India: In 1914 2/3rds of India's imports
came from Britain, but this fell due to wartime disruption and increased foreign
competition. As a result, Indian manufacturers gained more of domestic market.
Higher taxes on Indian imports - rising from 11% in 1917 to 25% in 1931 -
protected Indian exports against competitors.
20. positive effects for the empire: Canada: Emerged as an industrial power.
British manufacturers lost markets there. Canada increasingly looked to USA for
investment and markets.
21. negative effects for the empire: • India contributed almost £146 million -
inflation and shortages resulted.
• Australia and New Zealand, as exporters of food, relied heavily on the British
market, and consequently were hit hard by the disruption of war
22. What was the economic impact of the war? international trade: - While
Britain concentrated on the war effort, commercial rivals focused on seizing British
markets, particularly in India, the far east and Latin America
- Britain's staple industries were dependent on exports, which suffered e.g.
Japan's
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