history dwr

• Reasons for the decline of Traditional Industry


  • Competition from abroad
  • Obsolete methods
  • New markets
• During 1920’s USA, new methods of production were seen in many of its industries.Mass production was focused on cars and this was copied in other industries but British industries were too slow to move to new, quicker and more efficient methods of production.New emerging industries such as chemicals + automobiles were not switched quickly enough
• Competition from abroad


  • Old industries in Britain mostly produced raw materials or heavy goods like ships, textiles, coal, iron and steel, which depended on exports to be profitable (only profitable if they could sell worldwide)
  • From 1920’s,Britain faces more competition from abroad.Foreign competitors were much bigger and could produce at good prices that small British companies could not compete with
• New markers


  Finding new markets to buy British goods was difficult as the markets in the USA and Japan had boomed, and the policy of free trade allowed foreign goods to come to Britain freely
• The decline of traditional Industry. Britain had developed steel and iron works, but after WWI there was less demand for ships and armaments, and the USA and Japan undercut British prices. This impacted Britain as the decline in demand for steel and iron meant that Britain's steel industry declined, with steel making ceasing completely in EDDW Vale in 1929 and 3000 workers becoming unemployed in Dowlais in 1930.
• Decline of Traditional Industry The old industries in Britain (coal, ships etc.) depended on exports, but there was competition from abroad, and foreign competitors were much bigger and could produce goods at a price small British companies couldn't compete with, so trade declined.
• Britain had a successful textile industry, but man-made fibres became popular, and British textile industries faced competition from the US and Japan. This impacted Britain as Britain relied on obsolete methods of textile production, making man-made fibres produced by foreign competitors cheaper, so British goods were less desirable.
• On 29th October 1929, the US stock exchange collapsed and hundreds of thousands of people lost their life savings. Banks collapsed because loans were not repaid and businesses went bust as people stopped buying goods. The USA recalled loans given to European countries.The economic depression hit the Uk because of their over dependence on the USA