3.3 - Trade, commerce and the economic impact of the war Flashcards
What was the total cost of WW1 for Britain?
About £35bn, which was 13 times the Boer War cost
How much debt did Britain accumulate by 1919?
£7.5bn
Led to a huge rise in domestic borrowing.
What impact did WW1 have on Britain’s industrial competition?
Britain’s competitors won over markets due to production prioritisation for the war
What was the effect of the war on British exports?
British exporters lost revenue from exports due to war disruptions
What was the value of British overseas investment earnings in 1920?
Nearly £600m
How did the costs of running the Empire change post-WW1?
Britain’s industry was damaged, affecting income used for the empire
Growing nationalism also made the empire harder to control
What benefits did Britain gain from its victory in WW1?
Access to oil in the Middle East and diminished competition from Germany
This allowed Britain to maintain its dominant position in the world.
How much did India contribute to the war effort?
About £146m
What was the impact of the war on India’s import dependency?
India became less dependent on Britain
What tax changes occurred in India post-war?
High taxes were placed on Indian imports
Contributed to national growth
How did Canada emerge from WW1 economically?
As an industrial power, losing British influence
What was the significance of the financial relationship between Britain and Canada during WW1?
Britain borrowed $1bn from Canada
What was the economic impact of WW1 on Australia and New Zealand?
Heavily reliant on the British market, they were hit hard by trade disruptions
How did the dominions contribute to the war effort?
They paid for the forces they sent to the war
True or False: The impact of WW1 on the colonies was beneficial for Britain
Plus explanation
False
Many colonies felt they no longer needed Britain or relied on it too heavily during its economic struggles.
How did Britain’s attitude toward imperial trade change with the onset of the Great Depression?
Emphasis placed on the importance of the empire from British commerce
What was the Gold Standard and when did Britain return to it?
Britain returned to the Gold Standard in 1925 to stabilise its international trade
What was the Colonial Development Act 1929?
An exception to Britain’s attempts to recreate the pre-war trade system
What happened to Britain’s exports and imports from the Empire during the Great Depression?
Imports from the Empire increased but exports were not as successful
What was the Sterling Area?
ECA
Most countries of the Empire fixed their currencies to sterling, formalized under the Exchange Control Act of 1947
What 2 economic advantages did the Sterling Area provide to Britain?
Access to the British market for countries in the Sterling Area
A profitable outlet for British overseas investment
What percentage of British exports went to the Empire in 1934?
44% of exports went to the Empire in 1934.
What was the change in imports from the Empire from 1914 to 1934?
35% of imports came from the Empire in 1934 compared to 25% in 1914.
What was the trend of British exports to the Empire from 1909-13 to 1934-38?
Total for Empire exports increased from 35% in 1909-13 to 41% in 1934-38.
What was the outcome of the Ottawa Conference in 1932?
- A general 10% tax on all imports was introduced
- Britain and the Dominions gave each other’s exports preferential treatment
- Reinforced the role of the Empire in supplying foodstuffs and raw materials
What economic problems did Dominions like Australia and New Zealand face in the inter-war period?
Serious economic problems due to the cost of imports outstripping the income from exports.
What led to increased support for ‘imperial preference’ by 1931?
Increasing competition from the USA, Japan, and other emerging economies.
What was the impact of the Great Depression on colonies in Asia and Africa?
Colonies suffered from tumbling prices, leading to poverty and dissatisfaction with colonial rule.
What was the role of the Empire Marketing Board established in 1926?
To promote trade within the Empire.
What was the Import Duties Act of 1932?
An attempt to protect British industries by imposing duties on imports.
What percentage of British exports went to the Commonwealth/Empire by 1939?
Nearly 50% of British exports.
True or False: Many British industries were competitive during the 1920s and 1930s.
False.
What was Britain’s balance of payments situation in the late 1930s?
Britain had a serious balance of payments surplus.
Exports more than it imports
What was the economic condition of Britain in 1939 compared to 1914?
The economy in a far weaker condition in 1939 than in 1914.
What percentage of Britain’s merchant fleet was lost at the beginning of the Second World War?
About 54%.
How many tons of shipping did Britain lose due to German U-boat attacks?
11.7 million tons.
What vital raw materials were disrupted due to the loss of major colonies in South East Asia?
Rubber from Malaya.
What was the effect of diverting production to weaponry during the war?
Less was produced for exports.
What measures did Britain take to reduce imports during the war?
Promoted home production and food rationing.
What fraction of Britain’s overseas assets were sold during the war?
1/3.
What was the Lend-Lease agreement with the USA?
The US supplied Britain with weapons, food, and other necessities.
What was one consequence of the end of Lend-Lease in late 1945?
The USA was not prepared to support a revived British Empire financially.
How much was the massive US loan negotiated by John Maynard Keynes in 1945?
Approximately £900 million.
What was required for the pound to be made freely convertible to dollars?
The British economy had to be strong enough to exchange sterling for dollars at a fixed rate.
What crisis revealed the weakness of the British economy in spring 1947?
The Sterling Crisis.
Who was John Maynard Keynes?
An eminent British economist of the inter-war period.
What was the dual approach taken by Britain towards the Empire after the Second World War?
Cost of re-establishing world power threatened to exceed potential benefits.
What happened when the costs of controlling a colony outstripped its value?
Imperial control was abandoned.
What industries received heavy government investment due to their potential economic benefit?
The rubber and tin industry of Malaya.
What did the Colonial Development and Welfare Act of 1940 provide?
Wrote off some colonial debts and provided grants or loans.
How much aid was available to colonies under the Colonial Development and Welfare Act of 1945?
£120 million over 10 years.
What was required from each colony under the Colonial Development and Welfare Act of 1945?
To produce a ten-year development plan.
