Most countries in the world were affected by the Great Depression that started in the USA in 1929.
→ Great Britain, the super power during that period, had to sacrifice the policy of keeping gold reserve against its pound currency.
→ The American economy had collapsed. Many banks and Industries were closed down. rendering a large number of workers jobless.
→ America was forced to impose a number of restrictions to revive its economy.
→ Germany and other European nations, too. suffered heavily. The failure of democratic government to solve economic problems led the emergence to dictatorship in Germany.
→There was decline in production as well as International trade. This had reduced to less than 50%.