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War did, and continues to have, a large effect on industry in both nations involved. To fight a war, the military needs guns, bullets, tanks, planes, computers, uniforms, you name it. Obviously, the government doesn't constantly purchase wartime supplies of these goods from manufacturerers. So when the demand increases during war, production of these good exceeds the level of peacetime production. As a result, industry booms. However, war can have a negative impact on industry if the war is being fought near the center of industrial production or if the supply lines for raw materials is interupted by the fighting. For example, a factory may be producing record numbers of bullets for the war effort, but if the rail lines that bring the gunpowder and lead to the factory are destroyed by the fighting, the factory will not be able to operate.

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โˆ™ 2007-07-20 01:43:23
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Q: What effect did war have on industry?
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