How did the withdrawal of US loans during the phase of the Great depression affect the rest of the world? Explain in three points.
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Withdrawal of US loans affected different countries of the world in the following manner during the phase of great depression:
(i) Europe: It led to the failure of some major banks and the collapse of currencies such as British pound sterling.
(ii) Latin America: Here, it intensified the slump in agriculture and raw material prices.
(iii) US: US attempted to protect its economy in the depression by doubling import duties, also dealt with another severe blow to the world trade.