It was the territory of "Bosnia and Herzogovina" that Austria-Hungary seized in 1908, setting off tensions in Europe, since this was considered a blatant violation of state sovereignty.
They choose appeasment because their economies and reasources were too weakened by WW1 to fight another costly war. By using appeasement it ensured they would have a better defense because of borrowed time. If they had avoided appeasement and went to war, their military forces and economies would be insufficent and they would have sureley lost
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(Capitalism grew out of democracy, and the Enlightenment favored democracy)