ABSTRACT
In 1920, Great Britain firmly commits to a policy of internationalism. It is the most consistent supporter of the League of Nations, which led the way in working towards the recovery of Europe, especially Germany. In an era, when most powers maintained or erected high tariffs, Britain returned-although not entirely, as we will see-to free trade. Most British financial leaders continued the gold standard to revive international trade and restore the country's economic leadership, this required continual movement in the direction of balanced budgets and high interest rates. The war forced British industry to focus on military production, allowing the United States and Japan to move into global markets. In July 1919, the French government repudiates all of its trade treaties and over the next few years it signed new bilateral agreements that sought to balance imports and exports with individual countries. With the new tariff levels the value of imports exceeded that of exports by nearly two to one.
