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Q.

Why was post-war economic recovery difficult for Britain?


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a

Britain had huge internal debts

b

While Britain was busy fighting the war, India and Japan developed their industries, ending the dependence on British goods, and Britain’s external debts increased.

c

There was a massive increase in grain prices

d

All of the above 

answer is B.

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Detailed Solution

Post-war economic recovery was difficult for Britain because While Britain was busy fighting the war, India and Japan developed their industries, ending the dependence on British goods and Britain’s external debts increased.. The First World War (1914-1918) caused widespread economic and political instability, and Britain was no exception. After the First World War, the country faced a prolonged crisis. Britain was preoccupied with war, with industries being restructured to produce only war-related goods. Meanwhile, industries developed in India and Japan. After the war, Britain found it difficult to compete with Japan internationally and could not recapture its earlier dominance in the Indian market. Furthermore, Britain borrowed vast amounts from the US to finance war expenditures. Thus the once-great country was burdened with huge external debts at the war's end, and post-war economic recovery was difficult.
 
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Why was post-war economic recovery difficult for Britain?