War-time disruption of economies and production facilities


  • Economic burden of warfare
  • Destruction of economy due to war

Nature

The economic costs of warfare stem directly from the human casualties, the destruction of infrastructure and manufacturing plants. Under war-time conditions the production facilities and economies of territories involved in the hostilities are severely disrupted as a result of conversion of such facilities to war-time needs, destruction of such facilities, loss of foreign investment, decrease in international trade, disequilibrium in balance of payments, and disruption of long-range balanced growth. Moreover, it disrupts trade and international economic relations through its effects on the prices and availability of commodities, the dangers associated with the use of certain shipping routes, etc. On cessation of hostilities, it may take an extended period of time to return to economically viable peace-time production.


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