3.15 trade, commerce and the economic activity of war

Question 1

What were the 4 economic damages to empire as a result of ww1

Answer 1

-debt

-markets and industrial competition

-goriest costs of empire

-benefits of victory

Question 2

Effect of WW1 on Britain: debt

Answer 2

-overseas capital investment wiped out-could not invest in colonies

-cost 35 billion (13x Boer war) and 4 billion borrowed from USA

Pound taken of gold standard 1919

Debt 1914: 0.7 Bill
1918: 7.5 bill

Question 3

Effect of WW1 on Britain: markets and industrial competition?

Answer 3

Competitors win markets:

Japanese textile production(loss of rev from exports)

Question 4

Effect of WW1 on Britain: Growing cost of empire

Answer 4

Britain industry had been damaged which income used to run and defend empire- made it harder to police and control

Question 5

Effect of WW1 on Britain: Benefits of victory

Answer 5

Formal control in Middle East -access to oil

One of rivals Germany had been shattered and defeated

Question 6

Effect of WW1 on India?

Answer 6

Contributed £146 mill to war

Less dependent on Britain and imports fell

Question 7

Effect of WW1 on Canada?

Answer 7

Emerged as an industrial power meaning British manufacturers lost their influence-looked increasingly to the USA for investments

Britain borrowed 1 bill from Canada over the course of the war

Question 8

How did the Great Depression change Britain’s attic ur on imperial trade?

Answer 8

-much greater emphasis on trad with empire

-went back on gold standard in 1925 but came off it again in 1931

Stirling area became a great asset

Question 9

What was the Stirling area?(3)

Answer 9

-most empire countries fixed currencies to striking

-Stirling area formalised under exchange control act 1927

Gave access to British market for countries in striking area while ensuring British overseas investment was profitable (lessened damaging effects of Great Depression)

Question 10

Imports from empire in 1914 and 1934

Answer 10

1914: 25%
1934: 35%

Question 11

Imperial exports as a % of British exports 1913 and 1934

Answer 11

1913: 37% (195mil)
1934: 44% (166mil)

Question 12

Why did support for imperial preference increases in 1931

Answer 12

Great Depression would affect Britain less however dominions wanted to protect their own industries

Question 13

Outcome of Ottawa conference 1932

Answer 13

-Britain 10% tax on all imports other than crown colonies

-Britain’s and dominions give each others exports preferential treatment

Question 14

Which economy’s were extremely damaged in inter war period

Answer 14

Australia and New Zealand

Question 15

By 1939 what % of British exports went to commonwealth/empire

Answer 15

50%

Question 16

Why did ww2 affect the British economy more than ww1(6)

Answer 16

-entire economy geared to war

-weaker position in 1939 than 1914

-major setbacks in far east crippling expensive

-German U boat attacks 54% merchant fleet strength sunk in first 3 years

33% overseas assets sold

Britain borrowed from USA in the form of a lend lease

Question 17

How was Britain’s economic position made worse after ww2(3)

Answer 17

-USA ended lend lease (supplied with weapons,food ect)

-Keynes negotiated 900mill USA loan 1945

Stirling crisis 1947(freely convertible US dollar and uk pound-ran on of dollar reserves in 6 weeks)

Question 18

After ww2 British only focused on?

Answer 18

Developing economically valuable colonies

Question 19

Example of Britain investing in economically valuable colonies?

Answer 19

Rubber industry of Malaya

(Colonial and development welfare act of 1940 confirms this new approach to development)

Question 20

What did the colonial development and welfare act do 1940

Answer 20

Wrote of some coolant debts

Provided colonial grants worth 5 million a year

Question 21

What did the colonial and welfare act 1945 do?

Answer 21

-increased at to available colonies to £120m over 10 years

-required each colony to produce a 10 year development plan to show how they would use the funds