WORLD WAR

Causes and Consequences Analysis

Report
On

World War I & II

International Financial Management
Section: A

Submitted to,

Md. A. Hannan Joardar

Adjunct Faculty
School of Business
United International University

Submitted by,
Nima Hossain Nira
ID- 111 101 137
Date of Submission: 25th April, 2014

United International University

Letter of Transmittal
25th April, 2014
Md. Abdul Hannan Zoarder
Faculty
School of Business
United International University

Subject: Submission Of report on World War

Dear Sir,
With due respect and honor that we have prepared a report on World War as part of our course,
International Financial Management.
The subject is usually selected to learn about the Economic Consequence of World War. I have
researched lots of sites and collect several information and data to prepare the report. I am very
thankful to you that you have given an opportunity to fulfill necessary requirements successfully.
You can find the most recent information and closely connected to the issue. This will be really
beneficial for us me well as will raise my knowledge and experience in a new manner.

Thank you
Sincerely yours,

Nima Hossain Nira

ID- 111 101 137

iii

Acknowledgement

I would like to thanks to the creator of the universe, our almighty Allah to give us all patience
and knowledge to prepare the report. We also very thankful to Md. Abdul Hannan Zoarder,
our respected faculty of International Financial Management. He is a very well experienced
faculty and we can successfully prepare the report under his best cooperation and guidelines.
I am also grateful to the most popular search engine Google for upgrading the recent
technology that assists us really well to find out necessary and desired inputs. In todays
world, the internet and websites support us in a great manner. I cannot think even a single
moment without its help.

iv

Table of Contents
WORLD WAR I (19141919): [The Causes, Effects & Importance] .................................................................... 1
a. Underlying Causes of the First World War: ................................................................................................... 1
b. Effects of the World War I: ............................................................................................................................ 2
c. Importance: ..................................................................................................................................................... 3
WORLD WAR I (19141919) [Summary of Events] ............................................................................................ 4
The Start of the War ........................................................................................................................................... 4
The Western and Eastern Fronts ........................................................................................................................ 4
The Ottoman Empire .......................................................................................................................................... 4
Trench Warfare .................................................................................................................................................. 4
The United States Entrance and Russias Exit .................................................................................................. 4
The End of the War and Armistice ..................................................................................................................... 5
Germany after the War ....................................................................................................................................... 5
Timeline of World War One ................................................................................................................................... 7
WORLD WAR II (19391945) ............................................................................................................................ 10
Treaty of Versailles: ......................................................................................................................................... 10
The Rise of Fascism in Italy: ............................................................................................................................ 10
Worldwide Economic Depression: ................................................................................................................... 11
Japanese Expansionism: ................................................................................................................................... 11
Anti-Communism:............................................................................................................................................ 11
Appeasement: ................................................................................................................................................... 11
Militarism: ........................................................................................................................................................ 11
Nationalism: ..................................................................................................................................................... 12
American Isolationism: .................................................................................................................................... 12
Impact of the Second World War ......................................................................................................................... 12
Seven Major Consequences of World War II ....................................................................................................... 12
Theaters of War: Where WWII Was Fought ........................................................................................................ 13
World War II: An Overview ................................................................................................................................. 14
What Caused World War II? ............................................................................................................................ 14
Rise of Dictatorships ........................................................................................................................................ 14
A World at War ................................................................................................................................................ 14
A Changed World ............................................................................................................................................ 15
Timeline of WW II ............................................................................................................................................... 16
References: ........................................................................................................................................................... 18

WORLD WAR I (19141919): [The Causes, Effects & Importance]

In 1914 the whole world was in the throes of a horrible war known as the World War I. It is
so called because of its unprecedented horribleness and extensive nature. It was an inevitable
consequence of the crisis in international situation towards the close of the nineteenth
century.

a. Underlying Causes of the First World War:

Firstly, in the Vienna Congress (1815) nationalism was totally disregarded consequently,
potent nationalistic movements were launched everywhere in Europe.
Secondly, sharp commercial and colonial rivalries among the various European Powers
started in the 19th century. This competition resulted in the brutal battle among the various
European countries.
Thirdly, after unification, Germany became a powerful and prosperous country and
established itself as a competitor of England in the manufacture of industrial goods.
Fourthly, Germany now required colonies wherefrom it could bring raw materials and sell
finished products. England and France which had already established colonies in various
places of Asia and Africa considered Germany to be their rivals.
Fifthly, in the circumstances the European countries made an endeavor to increase their
military power. Very soon Germany became an adversary of England even in naval power.
Sixthly, European politics towards the beginning of the 20th century created a situation
favorable for war. Meanwhile Europe was divided into two opposing camps-the Triple
Alliance among Germany, Italy and Austria; and the Triple Entente consisting of France,
Russia and England.
Mutual spite and fear of aggression of the various countries led to the formation of these two
opposing camps.
Seventhly, when the international situation was thus very tense the dispute over the Balkans
at last made the war start. The rivalry between Austria and Serbia was actually the direct
cause of the World War I.

Eighthly, the Slavs in the Austrian territories Waged potent movement for their emancipation
from the Austrian yoke. They received direct and indirect assistance from Serbia.
These terrorists made a sudden attack on the heir apparent to the Austrian throne, Francis
Ferdinand and his wife who were then on sojourn in Serajevo (the capital of Bosnia, a
province of Austria) and killed them. This incident is popularly known as the 'Serajevo
Murder.
Ninthly, the Austrian government held Serbia responsible for this ghastly murder and a few
days later served an ultimatum on Serbia demanding a reply within forty-eight hours. Austria
was not satisfied with the reply and she formally declared war against Serbia on 28.

b. Effects of the World War I:

The World War I continued for four years. Millions of people lost their lives in the battlefield
and several others were mutilated.
No war before it had been so very extensive. It was a total war. The deadly weapons used in
this war were unprecedented and horrible.
From the historical point of view the World War I had an enormous importance.
1) Because of this war the European map underwent a change. The German, Russian,
Turkish and Austrian empires had fallen.
2) Out of the debris of these empires were born many new states like Czechoslovakia,
Yugoslavia, etc. The extents of the old states also underwent a change.
3) The spread of democracy and nationalism was the most significant effect of the World
War I.
4) The nationalistic movements gained in strength in the various countries of Europe,
Asia and Africa.
5) Democratic administrations were established in' the newly emerging states.
Dictatorship like Nazism of Germany or Fascism of Italy was found in those countries
where democracy had failed.
6) The labor became actively conscious of its rights. Consequently, trade-union
movements became potent in various countries. In a number of countries labor
welfare laws were passed to meet the demands of the laborers.
7) A world-wide economic crisis swept in as a result of the World War I.
8) From this crisis again dissension among the different countries followed.
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9) Internationalism spread as an upshot of the World War I. Most of the countries

showed their eagerness for international co-operation and assistance.
This gave rise to the international organization known as the League of Nations.

c. Importance:
From the historical point of view the World War I was of utmost importance in the history of
the World.
First, the War brought a total change in the map of Europe. The German, Russian, Turkish
and Austrian empires had fallen.
Second, out of the ashes of the four empires were born many new states like Czechoslovakia,
Yugoslavia and others. The extent of the old states of Europe also underwent major change.
Third, the spread of democracy & nationalism was another important aspect of the WW I.
Fourth, national movement gained strength in the countries of Europe, Asia and Africa. Also
democratic administrations were established in the newly emerging states.
Fifth, it is also to be remembered that dictatorships like Nazism of Germany and Fascism of
Italy developed because of the failure of democracy in these countries.

WORLD WAR I [Summary of Events]

The Start of the War
World War I began on July 28, 1914, when Austria-Hungary declared war on Serbia. This
seemingly small conflict between two countries spread rapidly: soon, Germany, Russia, Great
Britain, and France were all drawn into the war, largely because they were involved
in treaties that

obligated

them

to

defend

certain

other

nations.

Western

and

eastern fronts quickly opened along the borders of Germany and Austria-Hungary.

The Western and Eastern Fronts

The first month of combat consisted of bold attacks and rapid troop movements on both
fronts.

In

the

west,

Germany

attacked

first Belgium and

then France.

In

the

east, Russia attacked both Germany and Austria-Hungary. In the south, Austria-Hungary
attacked Serbia. Following the Battle of the Marne (September 59, 1914), the western front
became entrenched in central France and remained that way for the rest of the war. The fronts
in the east also gradually locked into place.

The Ottoman Empire

Late in 1914, the Ottoman Empire was brought into the fray as well, after Germany tricked
Russia into thinking that Turkey had attacked it. As a result, much of 1915was dominated by
Allied actions against the Ottomans in the Mediterranean. First, Britain and France launched
a failed attack on the Dardanelles. This campaign was followed by the British invasion of
the Gallipoli Peninsula. Britain also launched a separate campaign against the Turks
in Mesopotamia. Although the British had some successes in Mesopotamia, the Gallipoli
campaign and the attacks on the Dardanelles resulted in British defeats.

Trench Warfare
The middle part of the war, 1916 and 1917, was dominated by continued trench warfare in
both the east and the west. Soldiers fought from dug-in positions, striking at each other
with machine guns, heavy artillery, and chemical weapons. Though soldiers died by the
millions in brutal conditions, neither side had any substantive success or gained any
advantage.

The United States Entrance and Russias Exit

Despite the stalemate on both fronts in Europe, two important developments in the war
occurred in 1917. In early April, the United States, angered by attacks upon its ships in the

Atlantic, declared war on Germany. Then, in November, the Bolshevik Revolution prompted
Russia to pull out of the war.

The End of the War and Armistice

Although both sides launched renewed offensives in 1918 in an all-or-nothing effort to win
the war, both efforts failed. The fighting between exhausted, demoralized troops continued to
plod along until the Germans lost a number of individual battles and very gradually began to
fall back. A deadly outbreak of influenza, meanwhile, took heavy tolls on soldiers of both
sides. Eventually, the governments of both Germany and Austria-Hungary began to lose
control as both countries experienced multiple mutinies from within their military structures.
The war ended in the late fall of 1918, after the member countries of the Central Powers
signed armistice agreements one by one. Germany was the last, signing its armistice on
November 11, 1918. As a result of these agreements, Austria-Hungary was broken up into
several smaller countries. Germany, under the Treaty of Versailles, was severely punished
with hefty economic reparations, territorial losses, and strict limits on its rights to develop
militarily.

Germany after the War

Many historians, in hindsight, believe that the Allies were excessive in their punishment of
Germany and that the harsh Treaty of Versailles actually planted the seeds of World War II,
rather than foster peace. The treatys declaration that Germany was entirely to blame for the
war was a blatant untruth that humiliated the German people. Furthermore, the treaty
imposed steep war reparations payments on Germany, meant to force the country to bear
the financial burden of the war. Although Germany ended up paying only a small percentage
of the reparations it was supposed to make, it was already stretched financially thin by the
war, and the additional economic burden caused enormous resentment. Ultimately, extremist
groups, such as the Nazi Party, were able to exploit this humiliation and resentment and take
political control of the country in the decades following.

In summary, the main causes were- Growth of German power in Central Europe challenged
Great Powers (France, Great Britain, and Russia); International competition among European
powers for colonies and economic markets; naval rivalry between Great Britain and
Germany. Increase in size of European armies; Breakdown of the European treaty system and
the 19thc. Balance of Power. & Nationalism. The assassination of Prince Franz Ferdinand
in Sarajevo which caused Austria-Hungary to declare war on Serbia, dragging Germany and
Russia to war as well. The aggressive politics of the German Empire (annexation of French
Alsace-Lorraine and the buildup of the Navy), which made France and Britain bitter enemies
of Germany.
And the after effects were the creation of the Soviet Union (without a starving population and
soldiers fighting the central powers the Tsar would have been able to put down the red
revolution), & the defeat of Germany and the harsh terms of the Versailles Treaty paved the
way for the rise of Hitler and WWII.
The First World War ended officially on 28 July 1919, with the signing of the Treaty of
Versaille. The treaty blamed Germany for the war and required that nation to pay the most
reparations, to give up its overseas property, and to demilitarize at once.
Another huge result of the Treaty of Versaille was the changing of borders in Europe. France
was to gain back Alsace and Loraine, which had previously been taken by Prussia (Germany)
in the Franco-Prussian War in the 1870s. Germany also lost a lot of land, which was gained
by smaller, neighboring countries such as Denmark, Czechoslovakia, and Belgium. Germany
also lost the "Polish Corridor", which was (of course) given to Poland. In addition to this, the
Rhineland was to be occupied for 15 years as a buffer state between France and Germany.
Austria-Hungary was also fragmented into many small countries, leaving it permanently
weakened. In addition to this, the Ottoman Empire had crumbled during the war, leading to
newly "independent" Middle Eastern nation-states (which were quickly snatched up by
Britain, France, etc.)
The end of the war also caused a temporary economic bubble, which soon popped and the
Great Depression began.

Timeline of World War One

1914
June 28th

Francis Ferdinand assassinated at Sarajevo

July 5th

Kaiser William II promised German support for Austria against

Serbia

July 28th

Austria declared war on Serbia

August 1st

Germany declared war on Russia

August 3rd

Germany declared war on France and invaded Belgium.

Germany had to implement the Schlieffen Plan.

August 4th

Britain declared war on Germany

August 23rd

The BEF started its retreat from Mons. Germany invaded

France.

August 26th

Russian army defeated at Tannenburg and MasurianLakes.

September 6th

Battle of the Marne started

October 18th

First Battle of Ypres

October 29th

Turkey

entered

the

war

on

Germanys

side. Trenchwarfare started to dominate the Western Front.

1915
January 19th

The first Zeppelin raid on Britain took place

February 19th

Britain bombarded Turkish forts in the Dardanelles

April 25th

Allied troops landed in Gallipoli

May 7th

The Lusitania was sunk by a German U-boat

May 23rd

Italy declared war on Germany and Austria

August 5th

The Germans captured Warsaw from the Russians

September 25th

Start of the Battle of Loos

December 19th

The Allies started the evacuation of Gallipoli

January 27th

Conscription introduced in Britain

February 21st

Start of the Battle of Verdun

1916

April 29th

British forces surrendered to Turkish forces at Kut in

Mesopotamia

May 31st

Battle of Jutland

June 4th

Start of the Brusilov Offensive

July 1st

Start of the Battle of the Somme

August 10th

End of the Brusilov Offensive

September 15th

First use en masse of tanks at the Somme

December 7th

Lloyd George becomes British Prime Minister

February 1st

Germanys unrestricted submarine warfare campaign started

April 6th

USA declared war on Germany

April 16th

France launched an unsuccessful offensive on the Western

1917

Front
July 31st

Start of the Third Battle at Ypres

October 24th

Battle of Caporetto the Italian Army was heavily defeated

November 6th

Britain launched a major offensive on the Western Front

November 20th

British tanks won a victory at Cambrai

December 5th

Armistice between Germany and Russia signed

December 9th

Britain captured Jerusalem from the Turks

March 3rd

The Treaty of Brest-Litovsk was signed between Russia and

1918

Germany.
March 21st

Germany broke through on the Somme

March 29th

Marshall Foch was appointed Allied Commander on the

Western Front

April 9th

Germany started an offensive in Flanders

July 15th

Second Battle of the Marne started. The start of the collapse of

the German army

August 8th

The advance of the Allies was successful

September 19th

Turkish forces collapsed at Megiddo

October 4th

Germany asked the Allies for an armistice

October 29th

Germanys navy mutinied

October 30th

Turkey made peace

November 3rd

Austria made peace

November 9th

Kaiser William II abdicated

November 11th

Germany signed an armistice with the Allies the official date

of the end of World War One.

Post-war 1919
January 4th

Peace conference met at Paris

June 21st

The surrendered German naval fleet at Scapa Flow was

scuttled.

June 28th

The Treaty of Versailles was signed by the Germans.

WORLD WAR II (19391945)

Treaty of Versailles:
After Germany lost WWI, the winning nations drafted a treaty to address issues such
as territorial adjustments, reparations, armament restrictions, war guilt and the League
of Nations.
The treaty punished Germany and left bitter feelings.
Germany was forced to accept all the blame for the war and pay millions in
reparations to Britain and France.
Italy was disappointed that it was denied territory promised by Britain and France.

The Rise of Fascism in Italy: Fascism is a totalitarian form of government which Benito Mussolini came to power in 1922 and helped found the political ideology of
fascism. He sided with the Axis powers in 1940
Glorifies the state
Has one leader and one party
All aspects of society are controlled by the government
No opposition or protests are tolerated
Propaganda and censorship are widely practiced
In Germany, depression, unemployment and hard times led to a dramatic increase in votes for
Hitler and the Nazi Party.
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Worldwide Economic Depression:

After WWI many European economies were unstable.
The boom in the U.S. throughout the 1920s helped sustain worldwide trade.
The 1929 stock market crash in the U.S. and the resulting Great Depression spread
throughout the world. U.S. restrictive tariff policies worsened the depression.
As economies plummeted and unemployment rose, many people turned to powerful
leaders and governments who promised success through military buildup and the
conquest of territory.

Japanese Expansionism:
In 1931 Japan invaded Manchuria for raw materials.
The same year, Japan began to attack China, with full-scale war breaking out in 1937
in the Sino-Japanese War.
In 1938, war broke out between Japan and the Soviet Union in what were known as
the Soviet-Japanese Border Wars.

Anti-Communism:
Under communism, all means of production are controlled by the government, as are
property, the media, and all other aspects of society.
The 1930s saw the rise of many totalitarian regimes; but most people chose fascism
over communism.
Hitler exploited peoples fear of a communist takeover in Germany to rise to power in
1933.

Appeasement:
Appeasement is the act of giving in to an enemys demands in hopes of avoiding
further conflict.
In 1938, Hitler demanded that Czechoslovakia cede the Sudetenland to Germany. He
claimed that the German population living there was being mistreated.
The British and French prime ministers agreed to Hitlers demands without consulting
Czechoslovakian leaders, in the hopes that this would avoid a war in Europe.

Militarism:
The glorification of war- in which a nation strengthens its military and stockpiles
weapons in preparation for war.
An important aspect of militarism is that the glorification of war is incorporated into
all levels of society, including education of the nations youth.
Militaristic societies have existed throughout human history.

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Nationalism:
Nationalism is the belief in the superiority of ones own nation over all others.
In the extreme, it can lead to major conflicts between nations.
Hitler, Mussolini, and Japans Tojo each touted their nations ability to dominate all
others in the years leading up to WWII.

American Isolationism:
The failure of peace efforts such as the Kellogg Briand Treaty during the 1920s
disillusioned many Americans about international involvement.
The U.S. was in a major depression throughout the 1930s and was mostly concerned
with its own problems.
Conflict in Europe seemed distant, and the U.S. tried to remain neutral. This policy
weakened the European democracies.
The Nye Committee held congressional hearings in the mid-1930s, concluding that
the U.S. was tricked into entering WWI by arms manufacturers and Allied
propaganda.

Impact of the Second World War

Socially impact of WWII [Baby boomer]: After the war, there was a large population
growth in the world. 77 million American was born during this period. However, now
that baby boomers became older and requires extended health care. Baby boomers
comprise nearly 27% of the US population as of today.

Economically impact of WWII [Reconstruction cost]: After the war, most countries
encountered heavy losses in agricultural, industrial and especially economical. The
government had to spend lots of money to rebuild their industrial and infrastructure.
Unbalanced between light and heavy many manufacture when the war ended, light
and heavy industry became unbalanced and that causes a serious trouble for our
society.

Environmentally impact of WWII: Atomic bomb dropped at Hiroshima and Nagasaki

at the time of explosion, people within diameter of 500 meters were instantly
vaporized, and around 80,000 people were killed instantly, total casualty was around
135000 people.

Seven Major Consequences of World War II

The End of the European Age

The rise of the US to superpower status
The expansion of the Soviet Union and its rise to superpower status
The emergence of the Cold War & the beginning of the nuclear age
The rise of nationalism and independence movements in Asia and Africa
A renewed effort to secure lasting peace through international organizations
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Theaters of War: Where WWII Was Fought

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World War II: An Overview

What Caused World War II?
Most historians believe that the causes of World War II can be traced to World War I (19141918). Americans had fought in that earlier war to "make the world safe for democracy."
Those were the words and goals of U.S. President Woodrow Wilson. But the peace treaties
that ended World War I did not make the world safe for democracy. Instead, they caused
bitterness and anger that led to World War II.
Germany and its allies had been the losers in World War I. Germany was stripped of one
sixth of its territory and forced to pay huge reparations (payments by a defeated country for
the destruction it caused in a war). After World War I, Germany suffered from high
unemployment and runaway inflation. German money became almost worthless. Many
Germans seethed in anger at the peace treaty.
A League of Nations was set up after World War I to keep the peace. But the U.S. did not
join, and other countries were too busy with their own problems to worry about Germany and
other trouble spots.
Then, in the early 1930s, the world was hit by an economic depression. Workers lost their
jobs, trade fell off, and times were hard. People looked for leaders who could bring about
change.

Rise of Dictatorships
Germany, Italy, and Japan all came under the rule of dictators or military leaders. A dictator
named Mussolini took power in Italy in 1922. Military leaders took control of Japan in the
early 1930s. In Germany, Adolf Hitler, leader of the Nazi Party, gained power in 1933. These
leaders promised to restore their countries to greatness. But they set up totalitarian
governments. (A totalitarian government is controlled by a single political party that allows
no opposition and tightly controls people's lives.)
Hitler began to arm Germany for war. Japan invaded China. Mussolini sent Italian troops to
conquer Ethiopia, in Africa. None of the world's democracies did anything to stop them.

A World at War
Hitler had a plan to conquer Europe. He began by taking Austria, then Czechoslovakia.
Again, no one tried to stop him. As Winston Churchill, who became Britain's wartime leader,

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said, "Britain and France had to choose between war and dishonor. They chose dishonor.
They will have war."
Churchill's words came true. In 1939, German troops invaded Poland. World War II in
Europe had begun. The U.S. did not enter the war until December 1941, but once it did, it
took a leadership role. U.S. troops fought in North Africa, Europe, and the Pacific. At home,
Americans rolled up their sleeves to out produce the Axis powers (Germany, Italy, and Japan)
in the weapons of warplanes, battleships, and guns. Everyone did their part.

A Changed World
Germany surrendered on May 7, 1945, ending the war in Europe. The war in the Pacific did
not end until after the U.S. dropped two atomic bombs on Japan the only time such bombs
were ever used in war. Japan surrendered on August 14, 1945.
President Franklin D. Roosevelt, who had led the U.S. in wartime, did not live to see peace.
But in a speech written but never delivered, he spoke of the need to preserve peace: "Today
we are faced with the preeminent [above all other] fact that, if civilization is to survive, we
must cultivate the science of human relationships the ability of all peoples, of all kinds, to
live together and work together in the same world, at peace."

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16

Timeline of WW II
1939

Hitler invades Poland on 1 September. Britain and France declare war on Germany two days later.

1940

Rationing starts in the UK.

German 'Blitzkrieg' overwhelms Belgium, Holland and France.

Churchill becomes Prime Minister of Britain.

British Expeditionary Force evacuated from Dunkirk.

British victory in Battle of Britain forces Hitler to postpone invasion plans.

1941

Hitler begins Operation Barbarossa - the invasion of Russia.

The Blitz continues against Britain's major cities.

Allies take Tobruk in North Africa, and resist German attacks.

Japan attacks Pearl Harbor, and the US enters the war.

1942

Germany suffers setbacks at Stalingrad and El Alamein.

Singapore falls to the Japanese in February - around 25,000 prisoners taken.

American naval victory at Battle of Midway, in June, marks turning point in Pacific War.

Mass murder of Jewish people at Auschwitz begins.

1943

Surrender at Stalingrad marks Germany's first major defeat.

Allied victory in North Africa enables invasion of Italy to be launched.

Italy surrenders, but Germany takes over the battle.

British and Indian forces fight Japanese in Burma.

1944

Allies land at Anzio and bomb monastery at Monte Cassino.

Soviet offensive gathers pace in Eastern Europe.

D Day: The Allied invasion of France. Paris is liberated in August.

Guam liberated by the US Okinawa, and Iwo Jima bombed.

1945

Auschwitz liberated by Soviet troops.

Russians reach Berlin: Hitler commits suicide and Germany surrenders on 7 May.

Truman becomes President of the US on Roosevelt's death, and Attlee replaces Churchill.

After atomic bombs are dropped on Hiroshima and Nagasaki, Japan surrenders on 14 August.

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References:
http://www.bbc.co.uk/history/worldwars/wwtwo/ww2_summary_01.shtml
http://www.kidzworld.com/article/6157-overview-of-world-war-ii
http://world-war-2.info/summary/
http://www.ushmm.org/wlc/en/article.php?ModuleId=10007306
http://www.sparknotes.com/history/european/ww2/summary.html
http://www.scholastic.com/teachers/article/world-war-ii-overview
http://www.shmoop.com/wwii/summary.html

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