Name: Industrial Relocation to Developing Nations
Uploaded: 2019-07-19
Duration: 5 min 49 s
Description: Was the MNCs’ migration to low-wage countries from the mid-1970s a boon or a curse to these countries? Watch this video to unravel the story.

Question

Explain the causes of the Great Depression.

Accepted Answer

The Great Depression started in $1929$ and lasted till mid $1934$ 's. Many factors were responsible for that.

i) Agricultural overproduction along with its falling price remained a major problem. The farmer tried to increase their production to maintain their income, pushing down the prices even further.

ii) In mid $1920$ 's many European countries' investments depended on US loans. But from $1928$ onwards the US loan was withdrawn from the European market. So the countries that depended on US loans faced an acute crisis.

iii) It led to the failure of some major banks in Europe and the collapse of the currency system such as the British pound.
iv) With the fall of prices and the prospect of depression US banks also slashed domestic lending.
v) Many people could not repay what they borrowed, unemployment soared and the US banking system itself collapsed.

Explain the causes of the Great Depression.

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