Question

Describe the circular pattern of international finance established by the Dawes Plan. What was the result?

Answer 1

The circular pattern of international finance established by the Dawes Plan gives a result in which America would give loans to Germany so they could pay off their reparations to GB & France, if they reduced the reparations. America would lend money to Germany to pay reparations to GB & France. GB & France would then use that money to payback their debts to the US.

Answer 2

The Dawes Plan was proposed by the Dawes Committee to resolve any compensation and reparation problems that were affected by the World War II. Its circular pattern of international finance was to provide loans to Allies. For example, Germany who was in crisis during that time will be granted loans from the U.S. so they could recompense the damages to Great Britain and France. After Germany paid their debts to Britain and France, both countries can now clear off their debts to the United States.