330: Trade and Commerce 1914-1947

Question 1

What were 4 main economic impacts of WW1 on Britain?

Answer 1

• The war was very expensive for Britain, reducing their ability to pay for the empire.
• Britain gained colonies and mandates, meaning the cost of the empire increased.
• Lost traditional markets to competitors like Japan as factories focused on producing artillery.
• Lots of overseas investments had been wiped out.

Question 2

How much did India to Britain’s war effort during WW1? How did it effect them?

Answer 2

• They contributed £146 million to the war effort and experienced inflation and shortages as a result.

Question 3

What was the economic impact of WW1 on India?

Answer 3

• In 1914, ⅔ of India’s imports came from Britain but this began to decline, the decline partly benefited India.
• Britain began to place higher taxes on India in 1917 due to a rise in Nationalism, with an aim to protect Indian industry from competitors, it grew accordingly.

Question 4

What proportion of imports in India were from Britain in 1914?

Answer 4

2/3

Question 5

How did WW1 economically impact Canada, and the British relationship with them?

Answer 5

• Benefited from the war, became an industrial power.
• Looked more toward the USA for investments as the inter-war period progressed.
• Britain’s manufacturers lost a lot of ground here.

Question 6

How did WW1 economically impact New Zealand and Australia?

Answer 6

They suffered badly as they heavily relied on the British market for income and they were hit hard by the interruption the war caused.

Question 7

What economic system did Britain attempt in the 1920s? What exception was there to this policy?

Answer 7

• The old economic system from pre 1914.
• Britain returned to its gold standard in 1925.
  Exception: the ‘Colonial Development Act 1929’ which allocated British funds to colonial development.

Question 8

Did the empire become more or less important after the Great depression?

Answer 8

More, trade with empire increased

Question 9

When was Britain forced to abandon the gold standard again? What did Britain trade in instead?

Answer 9

1931, traded in sterling.

Question 10

What trading ‘area’ allowed greater access to British markets?

Answer 10

‘Sterling area’

Question 11

Who were the main rivals Britain was losing trade to?

Answer 11

USA, Germany, Japan.

Question 12

Did Imperial exports (as a percentage of British exports) increase or decrease from 1913 to 1934?

Answer 12

Increase. From 37% to 44%

Question 13

Did Imperial imports (as a percentage of British imports) increase or decrease from 1913 to 1934?

Answer 13

Increase, 25% to 35%

Question 14

Who argued for the return of Imperial preference in the early 1930s? Who opposed it?

Answer 14

Lord Beaverbrook, opposed by dominions to protect their struggling economies.

Question 15

What happened at the Ottawa conference? When was it?

Answer 15

1932.

• A compromise was reached to introduce a general 10% tax of all imports but crown colonies were exempt.
• And Britain and the dominions would give each other preference in their own markets.

Question 16

What was the economic position of Australia and New Zealand during the interwar period?

Answer 16

• Australia and New Zealand both had serious economic trouble
• Their imports from Britain outweighed their exports to Britain.
• Serious debts.
• Imperial preference was very important for both, especially Australia, when international trade fell in the 1930s.

Question 17

How much shipping did Britain lose during the war?

Answer 17

11.7 million tonnes, due to U-boat attacks.

Question 18

When were the two Colonial Development and Welfare Acts?

Answer 18

1940

1945

Question 19

What was the aim of the Colonial Development and Welfare Acts?

Answer 19

to strengthen the trading power of the empire and earn Britain more foreign currencies, especially dollars.

Question 20

What did each of the Colonial Development and Welfare Acts do?

Answer 20

1940: Wrote off some colonial debts and provided colonial grants of up to £5 million per year.
1945: Increased aid to around £120 million but required a 10 year development plan of how they would use it

Question 21

What proportion of overseas assets was sold to cover the expense of WW2?

Answer 21

1/3

Question 22

What was the economic impact of the Japanese invasions in WW2? Give an example?

Answer 22

Loss of trade with Asian colonies, such as rubber trade with Malaya.

Question 23

What did Britain implement at home during WW2 to allow for production of war materials?

Answer 23

Promoted rationing and home production.

Question 24

Why was less produced for export during WW2?

Answer 24

Diversion of production to war supplies.

Question 25

What did the USA do in 1945 which damaged Britain economically?

Answer 25

ended the Lend-lease arrangement.

Question 26

Who managed to negotiate a loan with the US after WW2? How much for? what was the other term?

Answer 26

£900 MIllion.

British sterling had to be freely convertible to dollars by 1947.

Question 27

Why did Britain wish to promote the empire post WW2? Why couldn’t it do this?

Answer 27

To reassert dominance, especially against the Japanese.

The cost of doing this often outweighed any economic benefits.

Question 28

What major colony did Britain lose in this period largely due to it’s economic burden?

Answer 28

India.

Question 29

How did economic problems affect colonial policy post WW2?

Answer 29

• More emphasis was put on its economic development.