1.3 Trade And Commerce Flashcards
What is mercantilism?
A system of regulations governing trade
What is a protectionist?
Using tariffs-particularly duties on imported goods to regulate trade
What was trade and commerce in the empire regulated by in the 18th century?
A system of mercantilism
What were British colonies obliged to do?
Send most of their produce to Britan
Use British ships for imports and exports
What happened to to the protectionists system in the first half of the nineteenth century?
It was dismantled under new theories of free trade(Adam smith book of nations)
What did Adam Smith Argus in his book of nations?
That wealth was indefinitely expandable and freedom from commercial restrictions was the only was to maximise prosperity
How did Britain maintain economic dominance?
-a limited application of force (known as imperialism of free trade)
Why was borrowing in London cheaper than elsewhere?
Lenders had faith in the reliability of British possessions
What did free trade result in?
-imperial trade and investment growing enormously -created an industrial empire
-colonies provided food stuff and raw materials which British industry which Britain convert to goods and sell back to the colonies
-imports of food and raw materials 20% from colonies
33% exported goods to colonies
What were British capital and technology used to ensure?
The empire had an adequate infrastructure to facilitate trade and maximise profits
How did Britain make transport to the coast more effective?
Developed railways wherever they went and extended river tr
In the 3rd quarter of the 19th century what % of Britains imports came from its colonies?
About 20%
Economic impact of free trade?
Could be as high as 6.5% gross national product
When did Sailing ships reach their highest state of efficiency
1860
What were clipper ships
Fast low volume high profit goods such as tea opium and spices(very fast but had to be replaced every 20 years)
What were steamships?
Used to carry bulky heavy goods more efficient with steam engine didn’t rely on wind and currents
Describe the importance of Britain building railways?
-brought new areas of land into reach
-largest investment in self-governing colonies of Canada
-India railways link cotton and jute growing plantations in the north with mills of Bombay and Calcutta
Describe the importance of canals and rivers?
-important means of transport for trading purposes
Avoid hazardous water
Developed on a hive scale in India from 1857
What were Canada, Australia and New Zealand’s crucial for
Producing wool at cheaper costs than in Europe
Colonies in South Africa produced
Palm oil ,sugar and coffee
British imports from India value (£)
1854 and 1876 for cotton and tea
1854: cotton: 1.6m , tea 24k
1874:cottom: 5.8 mil tea 2.4 mil
What did the discovery of gold in South Africa 1886 d?
Gold rush to Transvaal ,30,000 skilled British miners travel there
When are diamonds found in Kimberly?
1890
Argue why trade and commerce with empire was important for Britain
1850-75 20% imports(mainly raw materials and food)
1850-75 33% experts
Mining of precious gold and diamonds brought wealth
Tropical colonies in Africa produced goods not available in Britain
Trade and commerce with empire being less important
Informal empire was cheaper annexation
More trade outside empire than inside empire
Some new African colonies had little Economic value
Self governing colonies introduced traffic to protect their own manufacturers from Britain (Canada 1859)
How was naval pose important
-Britain has by far biggest navy
Browning number of smaller ships giving global influence
Ships helped Britain protect trading router
Why did charted companies become less important after 1857
Free trade and Indian rebellion
What were chartered companies?
Trading company would gain status, legal rights and privileges if it had a royal charter
Would gain a monopoly in operations
Why did charted companies become more important in 1850s and 1860s
Long depression and challenges from USA and European powers industrialisation-idea revived as a way of extending Britain’s trade and control
Long depression dates
1873-96
What companies were given charters from the British gov
Royal Niger company (1886)
Imperial British east Africa company (1888)
British South Africa company (1889)
What was the imperial federation league and when was it set up
1884 to promote colonial unity and support for charted companies -established branches throughout the country to try and gain support from the business community
Where was gold discovered in South Africa?
Witwatersrand
