What impact did World War 1 have on Australia?

World War I had a damaging effect on the economy. Although it stimulated new industries, some were not competitive. As an importer of labour, capital, and manufactured goods, and an exporter of commodities, Australia benefited from its relationship with the British Empire.Click to see full answer. People also ask, how did ww1 affect the Australian economy?The outbreak of war in August 1914 was disastrous for the Australian economy. Export industries were hit by the closing of markets and disruption of shipping, capital inflow slowed sharply, and vital imports were cut off. The impact of the war was compounded by a catastrophic drought.Subsequently, question is, what was the impact of ww1 on society? Domestic impact of World War One – society and culture. The war led the government to introduce conscription and the Defence of the Realm Act. The role of women changed and political engagement grew. Heavy casualties resulted in national mourning. Also question is, what were the impacts of WWI? However, WW1 created several consequences which led to a second World War: New states in Eastern Europe who were weak and ripe for the taking by Hitler. A devastated Germany and France appeased Hitler to prevent another war. U.S. policy of isolationism to avoid being drawn into another European conflict.How did the war shaped Australia?The country manufactured aircraft, landing craft, and armoured vehicles, and this industrialisation helped form the basis for Australia’s economic prosperity in the years following 1945. Australia experienced great losses in the First World War, too, but it was the Second World War that shaped modern Australia.