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Q.

Choose given statement is true/false:

The First World War affected the cotton market when it started.

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Detailed Solution

The above statement is True.
The First World War affected the cotton market when it started in 1914. At the farm, raw cotton was selling for 10.6 cents per pound at the start of World War I in 1914, but by November of that year, it had dropped to 6.6 cents. The Liverpool Cotton Market and the Lancashire Cotton Industry both experienced a turning point during World War I. Lancashire was unable to compete with its lower-cost labour and goods. Cotton imports to Liverpool were cut in half, and its Far East market collapsed. When textile imports from Britain decreased during the First World War, Indian companies were asked to create cloth for military needs.

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Choose given statement is true/false:The First World War affected the cotton market when it started.