12. Trade and Commerce Flashcards
What beliefs dominated 18th century Empire?
Mercantilism and protectionism
Mercantilism and protectionism
Belief in a controlled and regulated system of trade, monopolised by one superior country
Where are colonies expected to send all of their produce under mercantilism and protectionism?
To Britain
What belief about imperialism dominated 19th century Empire?
Free trade
Why did free trade develop in the 19th century?
Due to ‘Wealth of Nations’ by Adam Smith
What grew significantly under free trade?
Imperial investment and trade
What did London become due to free trade?
The financial capital
What did trade and commerce provide the British the means to expand?
The means to expand spheres of British influence
General opinion of Empire in 1890
It made Britain wealthy
What was believe that a would a bigger Empire bring about?
More wealth
What percentage of Britain’s total exports did India make up in 1914?
20% (worth around £150 million)
What was Empire’s total trade worth in 1896?
£745 million
Where did 10% of Britain’s beef and 15% of Britain’s wheat come from by 1914?
Canada
Where did Britain get its wool and sugar from?
South Africa and Australia
When was the Imperial Federation League established?
1884
When was the Imperial Federation League disbanded and what did this reflect?
1893 which reflected lack of interest in Empire’s commercial importance
Why was trade within Empire static after 1890?
Because Britain’s trade was growing with non-imperial world (E.g USA)
What did anti-imperialists believe about the cost of Empire for m/c people?
It cost them more than it benefitted them
How much of the £745 million of Empire’s total trade was within countries of Empire?
£183 million
What was Empire blamed for failing to do? (Two things)
Failing to modernise industry
Failing to improve living standards
Example of how Empire had failed to modernise industry
Britain was too reliant on Africa and Asia for rubber imports whilst Germany, Russia and France had developed synthetic rubber production
What did critics of Empire believe about colonial food imports?
They believes colonial food imports undermined British food production
What was decreasing wages in Britain?
Cheap foreign labour in colonies
What happened to British investment between 1900 and 1913?
It doubled from £2 billion to £4 billion
Between 1900 and 1913, where did the majority of British investment go?
USA and India
Loans to where provided bigger returns for British investors?
Loans to foreign nations (not in Empire)
Disadvantages of loans within Empire
Loans within Empire might be used to develop rival manufacturers to Britain
How was the informal Empire maintained?
Through significant capital investments and commercial treaties
Why could Britain afford to import more than it exported?
Due to huge earnings from overseas investments
Chamberlain’s views on imperialism
Pro-imperialist
What conference did Chamberlain set up in 1902?
The London Colonial Conference
What did Chamberlain’s London Colonial Conference discuss?
It discussed creating closer economic ties in the form of an imperial customs union
Why did Chamberlain believe imperial trade was preferable to free trade?
Because it was strategically reliable in times of emergency
What industries resisted Chamberlain’s pro-imperialist ideas?
Manufacturing, shipping and banking industries
Why did particular industries resist Chamberlain’s pro-imperialist ideas?
Because they had interest in free trade and a wider international community
What did opposers for Chanberlain argue about the old economic meaning of Empire and Britain’s wealth?
Old economic meaning of Empire had disappeared and Britain’s wealth had come from free trade
What did opposers to Chamberlain believe that Empire was not?
It was not an economic unitary and far from self-sufficient
Results of 1906 General election
Public rejected Chamberlain’s proposals
Liberal Party received majority
What was the Liberal Party committed to?
Free trade
What did Australia, New Zealand and South Africa do before WW1 to assert national interests over loyalties to Britain?
They imposed import tariffs (taxes)
What happened in India during the self-sufficiency movement?
British goods were boycotted and burned in streets
