Economic Motives · World History

How did the 'Long Depression' (1873–1896) in Europe influence imperial expansion?

  1. It caused nations to retreat from global trade to focus on internal growth
  2. It encouraged nations to seek new investment opportunities and markets to revive their economies
  3. It led to the total abolition of all colonial tariffs
  4. It forced European banks to stop lending money to overseas ventures
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Correct answer: It encouraged nations to seek new investment opportunities and markets to revive their economies

During periods of economic stagnation, European capitalists looked for higher profit margins in 'underdeveloped' regions. Imperialism provided new fields for investment in infrastructure like railways and mines.

Difficulty: Medium Question 4 of 20

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