- Changing global trade patterns: The United States emerged from the war as a major economic and industrial power, challenging Britain's dominance in global trade. The US had greatly increased its manufacturing capacity during the war, and its exports grew rapidly in the postwar period.
- The rise of nationalism and protectionism: After the war, many countries adopted policies of economic nationalism, which included increased tariffs and other trade barriers to protect their own domestic industries. This made it more difficult for British goods to compete in foreign markets.
- Increased competition: Britain faced increased competition from other European countries, such as Germany and France, as well as from Japan. These countries had also industrialized rapidly during the war, and they were eager to expand their share of global trade.
- Loss of colonies: As a result of World War I, Britain lost control of some of its colonies, including parts of Africa and the Middle East. This reduced the size of the British Empire and the markets available to British goods.