Question

The loss of two major sources of income crippled the French economy right before the onset of the Great Depression. What were they?

wine industry
foreign tourism
wool manufacturing
war reparations
( PICK MORE THAN ONE )

Answer 1

Foreign tourism, war reparations

Answer 2

The correct answers are foreign tourism and war reparations.

Foreign Tourism

During the 1920's tourism was an important economic sector in France, but due to the Wall Street crack in 1929, many big economies entered in a period of recession which caused the downfall of foreign tourist flow. This hit the French economy which entered in recession in 1931.

War reparations

In 1923 Germany's economy was in default and, for that reason, it couldn't afford any longer the war reparations payments it engaged to pay to France in the Treaty of Versailles. These war reparations payments were an important source of economic resources for France, used mainly to pay war loans that France had with the US. Without this source of money, the French economy started to cripple.