1.3 - Trade and Commerce 1857-1890 Flashcards
Define commerce.
Activities that help facilitate the exchange of goods from products or manufacture to markets
What is mercantilism?
A system of regulations governing trade whereby colonies had been obliged to send most of their produce to Britain
What is free trade?
Trade left to its natural course without tariffs, quotas, or other restrictions.
Why did free trade come to dominate economic thinking in the 19th century?
Mercantilism was dismantled under the influence of new theories of ‘free trade’ advocated by Adam Smith
What role did Britain play in promoting free trade?
Britain was the world’s foremost trading nation, actively supporting free trade agreements and using threats to achieve them.
What were the consequences of free trade for British colonies?
Trading patterns became well established; borrowing in London capital markets was cheaper; free trade saw imperial trade and investment grow
Approximately 20% of foodstuffs and raw materials came from British colonies.
What technological improvements supported the growth in trade?
Innovation in banking, shipbuilding, telegraph lines, railways, and refrigeration.
What was the impact of steamships on trade?
Steamships increased cargo capacity, could travel faster, and extended Britain’s reach into previously inaccessible countries.
What was the significance of railways in the British Empire?
Railways ensured British control and opened new areas for economic development
How did canals support trade?
Canals provided important means of transport for trading purposes and were developed to avoid hazardous stretches of water.
What agricultural goods did Britain import from its colonies?
Cheap foodstuffs and raw materials such as wool, sugar, coffee, cocoa, and palm oil
What mineral goods were sourced from British colonies?
Tin, gold, diamonds, copper, coal
Where and when were gold deposits found prompting a gold rush?
1886 in the Transvaal
True or False: Free trade led to the establishment of London’s financial capital.
True
What percentage of British exports went to its Empire?
Approximately 1/3
What percentage of all imports came from colonies between 1850-1875?
20%
Which country was essential to Britain’s economy?
India
What was the increase in value of British imports of raw cotton from India from 1854 to 1876?
From £1.6 million to £5.8 million
What types of precious materials were mined that brought wealth to Britain?
Gold and diamonds
What was one immediate impact of imperial free trade on indigenous manufacturing?
Collapse of local industries
What was the British Navy’s status in the 19th century?
The biggest in the world
What military actions did the British Navy enable to protect British interests?
Naval bombardments, seizure of ships, land raids, punitive expeditions
What was the concern regarding naval power in the 1880s?
Growing concern about naval weakness
What are Chartered Companies?
Commercial organisations granted privileges by the government
