The factor that contributed to the spread of the Great Depression in overseas was the reduction of United States investment in European nations.
Further Explanations:
United States was having a sorted economy since its independence and becoming of its blooming economy it used to invest a large sum of money in the European States. Before the initiation of WWl its economy was at its maxim peak with abundant industrial production and thriving moneymaking economy. Even after the war, it was the foremost moneylender for the Europen nations , assisting them in war reparation.The war was so devastating for the Europen nations that thy took a lot of time to mend themselves. In the whole process, they didn’t pay their loan on time and as a result of it, the American banks went bankrupt. The bankruptcy reduced the worth of American currency and pushed it in the ditch of the Great Depression.
As a result of it, the United States reduced its investment in the Europen nations and pushed them in the trap of depression. The depression in the European nation was of the same intensity as of American Depression.
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Answer Details
Grade: High School
Subject: History
Chapter: Great Depression
Keywords:
United States, independence, Great Depression,economy, Currency, Great Depression,blooming economy,European States, WWl, industrial production, moneymaking economy, Europen nations, bankrupt, American currency
