Bigger foreign countries able to produce quicker and sell cheaper
Britain slow to follow along with new developments in other countries like mass production in America and to switch to new industries like chemicals and cars
Companies that exported abroad often had to pay Import duties
Cost of coal production
65p per tonne in America, £1.56 in Britain
Short term cause
The Wall Street Crash in 1929
Wall Street Crash
Caused confidence to fall and international trade to decline
By 1939 British exports had halved and were importing more than they were exporting
