How did the withdrawal of US loans during the phase of the Great depression affect the rest of the world? Explain in three points.
How did the withdrawal of US loans during the phase of the Great depression affect the rest of the world? Explain in three points.
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Withdrawal of US loans affected different countries of the world in the following manner during the phase of great depression:
(i) Europe: It led to the failure of some major banks and the collapse of currencies such as British pound sterling.
(ii) Latin America: Here, it intensified the slump in agriculture and raw material prices.
(iii) US: US attempted to protect its economy in the depression by doubling import duties, also dealt with another severe blow to the world trade.
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