3. Trade and Commerce

Question 1

The position/power of the US after WW2

Answer 1

USA economically dominated the world
Dollars became the main currency
The US Marshall Plan of 1948-52 provided Britain with $3.3 billion

Question 2

How did Britain attempt to pay for vital imports in the post-war period?

Answer 2

Britain needed to earn dollars and build up foreign exchange reserves to pay for imports
Rationing used in Britain to reduce food import ants
British industrial production prioritised for export rather than the domestic market
Tried to develop production and export facilities in the colonies

Question 3

Why was trade with the Empire and Commonwealth important up to the 1960s?

Answer 3

It provided essential imports of food and raw materials when Britain’s reserves of foreign exchange were too limited to source imports from any other parts of the world

Question 4

Percentage of UK overseas investment that went in Empire in 1956

Answer 4

In 1956, approximately 58% of all overseas investments in the UK were in Empire companies and governments
However, from the 1960s, other parts of the world became more important

Question 5

What was set up in 1948 by Britain to co-ordinate major projects and develop self-sustaining agriculture in the colonies?

Answer 5

Colonial Development Corporation

Question 6

What was the Colonial Development Corporation renamed to in 1963?

Answer 6

The Commonwealth Development Corporation

Question 7

Example of a success and example of a failure of the Colonial Development Corporation

Answer 7

Success: Malay rubber proved a crucial dollar earner
Failure: Tanganyika Groundnut Scheme 1948

Question 8

Why had Europe emerged as a favourable trading partner by the 1960s?

Answer 8

European economy recovered quickly from the war
Advances in science and technology
By the mid-50s there was full employment throughout Europe, with high living standards

Question 9

Why did France reject Britain’s application to the EEC?

Answer 9

Because when Britain joined it would bring the Commonwealth with it meaning that countries outside of Europe (with their cheap goods) would also join.
Britain still cared about the Commonwealth and weren’t prepared to abandon it for Europe

Question 10

Factors that show that the Empire/Commonwealth were important to the post-war reconstruction of Britain: trade

Answer 10

Trade with the Empire and Commonwealth grew in exports and imports
Imports in 1948 - £933m
Imports in 1965 - £1720m

Question 11

Factors that show that the Empire/Commonwealth were important to the post-war reconstruction of Britain: dependence on trade for Britain

Answer 11

Britain was dependent on the colonies in some key raw materials and foodstuffs (E.g. meat from New Zealand)

Question 12

Factors that show that the Empire/Commonwealth were important to the post-war reconstruction of Britain: colonial development

Answer 12

Significant efforts made at colonial development post-WW2 especially in Africa shown by Colonial/Commonwealth Development Corporations (1948/1963)

Question 13

Factors that show that the Empire/Commonwealth were important to the post-war reconstruction of Britain: British commitment

Answer 13

Britain remained committed to its colonies despite the loss of India in 1947

Question 14

Factors that show that the Empire/Commonwealth were NOT so important to the post-war reconstruction of Britain: 1967 Sterling Devaluation

Answer 14

Devaluation of the £ destroyed the Sterling Area in 1967 showing that the Sterling wasn’t globally strong
Trade with the Commonwealth couldn’t prevent devaluation and cover trade deficit

Question 15

Factors that show that the Empire/Commonwealth were NOT so important to the post-war reconstruction of Britain: trade with the Empire

Answer 15

Trade with the Empire decreased as a percentage of overall trade
Exports in 1948 - 46%
Exports in 1965 - 28%

Question 16

Factors that show that the Empire/Commonwealth were NOT so important to the post-war reconstruction of Britain: failure of colonial development projects

Answer 16

Some colonial development schemes failed

Question 17

Factors that show that the Empire/Commonwealth were NOT so important to the post-war reconstruction of Britain: Britain’s reliance on the US

Answer 17

Britain relied on Marshall Aid ($3.3 billion in total)
Britain had to back down in the Suez Crisis because it wasn’t economically strong enough to oppose the USA

Question 18

Factors that show that the Empire/Commonwealth were NOT so important to the post-war reconstruction of Britain: trade with Europe vs trade with the Commonwealth

Answer 18

By 1947, trade with Europe exceeded that with the Commonwealth, hence Britain applied to join the EEC

Question 19

Factors that show that the Empire/Commonwealth were NOT so important to the post-war reconstruction of Britain: cost vs value of the colonies

Answer 19

The cost of administrating the colonies outstripped their value to Britain