2: state of economy BRT Flashcards
what were the main staple industries in Britain 1914
textiles, steel, coal and shipbuilding
what percentage of exports came from staple industries in 1913
60%
what were the main industrial areas which produced the staples
coal mines in south wales, northern England and scotland
what had allowed Britain to lead in staple industries throughout the 19th century
it was the first country to have an industrial revolution
which countries were seen as a threat to britains dominant position in staple industries 1913
Germany and USA
between when was Britain key shipbuilding nation
1870-WW2
why was there little worry about Germany and USA making faster progress in staple industry
britains output of iron and steel continued to increase and Germany and USA had considerable advantages over britain
what advantages did Germany and USA have over Britain in staple industries
more access to raw materials and larger home markets
which other staple industries grew
coal industry continued to be profitable
cotton trade maintained strong exports
3 most prominent new industries
electronic engineering, chemical and motor vehicle production
what was new industry growth like in comparison to economy
were expanding faster than economy as a whole: 3.8% compared with 2% overall
how many people were working in agriculture by 1850
2 million
how many people working in agriculture by 1901
1,400,000
why had number of agricultural workers fallen by 1901
mechanisation
more imported food eaten
how much did farming account for employment, national income and national investment
10% 1906-1914
how was most british land arranged
in large estates let out to tenant farmers
how did tenant farmers gain profit
selling what they produced
how did landlords respond to agricultural prices lowering in the 1870s
lowered rents as farmers gained less from selling their products
why did some landowners invest more capital in their land mid19th cent
to get higher production in hope of more profit
why did many businessmen buy large estates
had more money than traditional farmers- wanted to gain social status as country gentlemen
why did farmers have to change their focus of production by 1914
agricultural depression late 19th cent and competition from abroad
what did farmers change their focus of production to by 1914
dairy farming and beef cattle
why was dairy farming and beef cattle more profitable than arable crops
crops vulnerable to overseas competition
what made britain leading trading nation in 19th century
- 30% goods and services produced in britain sold abroad
- 25% of world trade was Britain’s
- dominated worlds shipping
how did invisible exports continue to grow in 20th century
- world leader in banking, investment and insurance
- London remained commercial centre of the world
- reliability of bank of England encouraged many foreigners to invest in british enterprises
what did britains earnings from invisible exports help to ensure
britain maintained healthy balance of payments despite value of imports rising and value of exports declining
what percentage of total national wealth was in investment overseas by 1913
32%
what occurred between 1870-1914 that became known as the late Victorian recession
- britain overtaken by Germany and America in iron and steel output
- rate of industrial growth less than USA
- share of worlds exports declined
- imports grew faster than exports- trade gap
- former workshop of world? now imported manufactured goods
what did the late Victorian recession case industrialists and politicians to raise questions about
standards in education, free trade policy and failures of industry to adapt quickly enough to new technologies and ways of working
why was britain struggling to keep the lead in cheap textiles, iron and steel
they invested few resources into researching new methods of improving the production of these goods than america
what was the reason for the lack of innovation
industries were so established in britain, factory and plant equipment was less modern than that of its rivals and so changing was an expensive option
how were coal mines lagging behind
they were labour intensive as oppose to mechanical methods overseas
who had britain fallen behind in 1900 and in what industries
America and Germany- steel
America- coal
why were manufacturing areas also failing
firms failed to develop the organisational skills and techniques necessary for the type of mass production seen by the USA
evidence of lack of progress in new industries
- german chemical industry 2x size of british 1913
- british army used german dyes for uniforms
- large scale development of electrification for tramway’s and factories began 10 years after usa
why did America have a high wage economy
workers were paid enough to buy the goods they produced
high demand and encouraged production
what was the problem with britains low wage economy
only rich and middle class could afford new manufactured goods- small domestic market
how did Germany and USA keep their domestic markets free from competition
used tariffs
what did liberals free trade policy mean
foreign traders had easy access to british markets and britain could not bargain with other countries to reduce their tariffs
what did concerns over economic decline lead to the fear of
- workers not learning sufficient skills in schools
- britain not producing enough qualified inventors and designers and technicians
evidence to prove britain was behind in education
usa and Prussia (n Germany) introduced primary education for all in early 10th cent
britain only did 1870-1881`
how were steamships and railways a problem
grain from north American prairies sold more cheaply than british farmers could produce it and farmers forced to reduce their production
refrigerated ships in 1880s meant…
cheap meat could be brought from aus, nz and south america
staple industries profitable and in some areas…
increasing production
what did it mean to Britain that world trade was expanding rapidly
British goods were selling in greater quantities than before in absolute terms
how did London remain the commercial centre of the world
its dominance was unchallenged
what did invisible earnings help to compensate for
the growing trade gap between visible exports and imports
what did cheaper imports of cereals mean for livestock farmers
cheaper foodstuffs
home demand for which products within agriculture remained strogn
fresh milk and high-quality meat
what did the census of 1911 show
increase in number of farm labourers
what did the availability of cheaper food mean
the value of wags was consistently rising in real terms
