Summarize how the Great Depression affected Japan. (1 point)
A.It brought in a flood of immigrants desperate for work.
B.It led the government to launch a host of programs to assist the unemployed and the poor in general.
C.It forced the Japanese government to borrow heavily from foreign governments.
D.It severely damaged foreign trade, on which Japan depended heavily, creating great economic hardship
D. It severely damaged foreign trade, on which Japan depended heavily, creating great economic hardship.
D.It severely damaged foreign trade, on which Japan depended heavily, creating great economic hardship.
The correct answer is D. The Great Depression severely damaged foreign trade, which had a significant impact on Japan's economy. To understand this, we can look at the historical context and key factors that contributed to the effect of the Great Depression on Japan:
1. Decline in Foreign Trade: Japan heavily relied on exports for its economic growth. When the global economic downturn hit during the Great Depression, demand for Japanese goods decreased dramatically. This decline in foreign trade led to a contraction of the Japanese economy and resulted in economic hardship for the country.
2. Economic Contraction: The decline in foreign trade meant a decrease in export revenues, causing many Japanese industries to face financial difficulties. This led to reduced production, factory closures, and unemployment. As a consequence, poverty levels increased, especially for those reliant on export-related industries.
3. Financial Instability: With the drop in foreign trade and declining revenues, Japan faced a shortage of foreign currency reserves. To cope with this issue, the Japanese government borrowed heavily from foreign governments to stabilize its economy and finance various programs aimed at assisting the unemployed and the poor. However, this borrowing put Japan in a vulnerable position, making the nation reliant on external financial assistance.
Therefore, the Great Depression severely damaged Japan's foreign trade, resulting in economic hardship and increased poverty levels due to decreased export revenues. The Japanese government had to borrow extensively from foreign governments to mitigate the negative impacts of the economic downturn.