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The Northern blockade was the biggest factor, preventing the South from exchanging its cotton for the war supplies it needed.

At the beginning, the South decided to withhold cotton from the world market, to encourage other countries to intervene on behalf of the Confederates and break the blockade.

This turned out a blunder, as there was a glut of cotton on the market just then, so no country really felt the pressure, and by the time they changed their policy, the blockade had become highly effective.

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Q: What was the impact of American Civil War on the cotton supply?
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