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)
