3.3 - Trade, commerce and the economic impact of the war

Question 1

What was the total cost of WW1 for Britain?

Answer 1

About £35bn, which was 13 times the Boer War cost

Question 2

How much debt did Britain accumulate by 1919?

Answer 2

£7.5bn

Led to a huge rise in domestic borrowing.

Question 3

What impact did WW1 have on Britain’s industrial competition?

Answer 3

Britain’s competitors won over markets due to production prioritisation for the war

Question 4

What was the effect of the war on British exports?

Answer 4

British exporters lost revenue from exports due to war disruptions

Question 5

What was the value of British overseas investment earnings in 1920?

Answer 5

Nearly £600m

Question 6

How did the costs of running the Empire change post-WW1?

Answer 6

Britain’s industry was damaged, affecting income used for the empire

Growing nationalism also made the empire harder to control

Question 7

What benefits did Britain gain from its victory in WW1?

Answer 7

Access to oil in the Middle East and diminished competition from Germany

This allowed Britain to maintain its dominant position in the world.

Question 8

How much did India contribute to the war effort?

Answer 8

About £146m

Question 9

What was the impact of the war on India’s import dependency?

Answer 9

India became less dependent on Britain

Question 10

What tax changes occurred in India post-war?

Answer 10

High taxes were placed on Indian imports

Contributed to national growth

Question 11

How did Canada emerge from WW1 economically?

Answer 11

As an industrial power, losing British influence

Question 12

What was the significance of the financial relationship between Britain and Canada during WW1?

Answer 12

Britain borrowed $1bn from Canada

Question 13

What was the economic impact of WW1 on Australia and New Zealand?

Answer 13

Heavily reliant on the British market, they were hit hard by trade disruptions

Question 14

How did the dominions contribute to the war effort?

Answer 14

They paid for the forces they sent to the war

Question 15

True or False: The impact of WW1 on the colonies was beneficial for Britain

Plus explanation

Answer 15

False

Many colonies felt they no longer needed Britain or relied on it too heavily during its economic struggles.

Question 16

How did Britain’s attitude toward imperial trade change with the onset of the Great Depression?

Answer 16

Emphasis placed on the importance of the empire from British commerce

Question 17

What was the Gold Standard and when did Britain return to it?

Answer 17

Britain returned to the Gold Standard in 1925 to stabilise its international trade

Question 18

What was the Colonial Development Act 1929?

Answer 18

An exception to Britain’s attempts to recreate the pre-war trade system

Question 19

What happened to Britain’s exports and imports from the Empire during the Great Depression?

Answer 19

Imports from the Empire increased but exports were not as successful

Question 20

What was the Sterling Area?

ECA

Answer 20

Most countries of the Empire fixed their currencies to sterling, formalized under the Exchange Control Act of 1947

Question 21

What 2 economic advantages did the Sterling Area provide to Britain?

Answer 21

Access to the British market for countries in the Sterling Area

A profitable outlet for British overseas investment

Question 22

What percentage of British exports went to the Empire in 1934?

Answer 22

44% of exports went to the Empire in 1934.

Question 23

What was the change in imports from the Empire from 1914 to 1934?

Answer 23

35% of imports came from the Empire in 1934 compared to 25% in 1914.

Question 24

What was the trend of British exports to the Empire from 1909-13 to 1934-38?

Answer 24

Total for Empire exports increased from 35% in 1909-13 to 41% in 1934-38.

Question 25

What was the outcome of the Ottawa Conference in 1932?

Answer 25

* 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

Question 26

What economic problems did Dominions like Australia and New Zealand face in the inter-war period?

Answer 26

Serious economic problems due to the cost of imports outstripping the income from exports.

Question 27

What led to increased support for 'imperial preference' by 1931?

Answer 27

Increasing competition from the USA, Japan, and other emerging economies.

Question 28

What was the impact of the Great Depression on colonies in Asia and Africa?

Answer 28

Colonies suffered from tumbling prices, leading to poverty and dissatisfaction with colonial rule.

Question 29

What was the role of the Empire Marketing Board established in 1926?

Answer 29

To promote trade within the Empire.

Question 30

What was the Import Duties Act of 1932?

Answer 30

An attempt to protect British industries by imposing duties on imports.

Question 31

What percentage of British exports went to the Commonwealth/Empire by 1939?

Answer 31

Nearly 50% of British exports.

Question 32

True or False: Many British industries were competitive during the 1920s and 1930s.

Answer 32

False.

Question 33

What was Britain's balance of payments situation in the late 1930s?

Answer 33

Britain had a serious balance of payments surplus. | Exports more than it imports

Question 34

What was the economic condition of Britain in 1939 compared to 1914?

Answer 34

The economy in a far weaker condition in 1939 than in 1914.

Question 35

What percentage of Britain's merchant fleet was lost at the beginning of the Second World War?

Answer 35

About 54%.

Question 36

How many tons of shipping did Britain lose due to German U-boat attacks?

Answer 36

11.7 million tons.

Question 37

What vital raw materials were disrupted due to the loss of major colonies in South East Asia?

Answer 37

Rubber from Malaya.

Question 38

What was the effect of diverting production to weaponry during the war?

Answer 38

Less was produced for exports.

Question 39

What measures did Britain take to reduce imports during the war?

Answer 39

Promoted home production and food rationing.

Question 40

What fraction of Britain’s overseas assets were sold during the war?

Answer 40

1/3.

Question 41

What was the Lend-Lease agreement with the USA?

Answer 41

The US supplied Britain with weapons, food, and other necessities.

Question 42

What was one consequence of the end of Lend-Lease in late 1945?

Answer 42

The USA was not prepared to support a revived British Empire financially.

Question 43

How much was the massive US loan negotiated by John Maynard Keynes in 1945?

Answer 43

Approximately £900 million.

Question 44

What was required for the pound to be made freely convertible to dollars?

Answer 44

The British economy had to be strong enough to exchange sterling for dollars at a fixed rate.

Question 45

What crisis revealed the weakness of the British economy in spring 1947?

Answer 45

The Sterling Crisis.

Question 46

Who was John Maynard Keynes?

Answer 46

An eminent British economist of the inter-war period.

Question 47

What was the dual approach taken by Britain towards the Empire after the Second World War?

Answer 47

Cost of re-establishing world power threatened to exceed potential benefits.

Question 48

What happened when the costs of controlling a colony outstripped its value?

Answer 48

Imperial control was abandoned.

Question 49

What industries received heavy government investment due to their potential economic benefit?

Answer 49

The rubber and tin industry of Malaya.

Question 50

What did the Colonial Development and Welfare Act of 1940 provide?

Answer 50

Wrote off some colonial debts and provided grants or loans.

Question 51

How much aid was available to colonies under the Colonial Development and Welfare Act of 1945?

Answer 51

£120 million over 10 years.

Question 52

What was required from each colony under the Colonial Development and Welfare Act of 1945?

Answer 52

To produce a ten-year development plan.