Describe the economic boom of the 1920s and its causes. What impact did the spectacular growth of the automobile industry have on related business activities

Question

Nylah

Business

11 May, 19:34

Describe the economic boom of the 1920s and its causes. What impact did the spectacular growth of the automobile industry have on related business activities

+1

Answers (1)

Know the Answer?

Catalina Rogers · Answer 1

Technology, US nuetral policy with other countries and economic policies, Automobile industry boom and other factors played a vital role in the transformation of US economy

Explanation:

After World War 1, the Europe was almost on the edge of bankruptcy and failure to secure the investments arising and gave huge losses to investors because of endless war in europe. The only country at that time that had no war threats and evolvement that can affect it was United States. So investors thought it is one of the best opportunity for them to invest in US.

The Technology and the great innovation in processes was the other most important benefit that was derived and valued by the customers and investors.

The Automobile industry brought demand for its spare parts which were prepared by the other companies for example tyres, tubes, paints, glasses, tools and gasoline increased demand in the country. Increased in quantity of purchases of vehicles brought demand of infrastructure development and this increased demand of cement, steel products, road, etc.