how did the first world war transformed US into an international creditor?
Chapter - the making of a global world
Class - 10 History
Answer for at least 3marks question...
Answers
(ii) Britain borrowed large sums of money from US banks as well as from companies to pay off loans.
(iii) US though a party to war was physically unaffected. It witnessed industrial boom and increase in agricultural production.
(iv) The US was in a position to lend to European countries to recover from the shock of war. As a result, US emerged as an international creditor from a debtor.
(v) By end of war US and its citizens owned more overseas assets than foreign governments and citizens owned in the US.
Answer:
the first world war transformed US into an international creditor because USA emerged as major power in the world.
Explanation:
The factor which make USA an international creditor are:
(i) The first industrial war was the First World War I
(ii) To pay back loans, Britain took out significant loans from US banks and businesses.
(iii) Despite being a war party, the US was not physically harmed. Both the industrial and agricultural sectors experienced growth.
(iv) The US was able to lend money to European nations so they could recuperate from the shock of the war. US changed from being a debtor to being a global creditor as a result.
(v) By the end of the war, the United States and its citizens owned more assets abroad than other countries' governments and residents did in the US.
All these together transformed the USA as an international creditor.
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