8. Trade and Commerce between the Wars

Question 1

Impact of WW1 on the British economy

Answer 1

Britain lost many international markets
Key industries severely damaged
Huge debt to US - economic power shifted from Europe to US
British pound came off Gold Standard

Question 2

Britain and the Gold Standard as a result of WW1

Answer 2

British Pound came off the Gold Standard during war
Back on in 1925
Off it again in 1931 as a result of the Great Depression

Question 3

The value of Empire to British economy before and after WW1

Answer 3

Before WW1: Empire seen as valuable part of Britain’s international economy
After WW1: Empire seen as less valuable due to huge economic and military contribution Empire made to British war effort

Question 4

Changing views of the value of Empire in the inter-war years

Answer 4

Empire treated as essential to the British economy after 1929 due to the Depression

Question 5

The Gold Standard

Answer 5

Signal of a reliable and strong economy
Associated with national strength and stability
Political strength if your country is on it

Question 6

How did the war have negative impacts on India’s trade and commerce?

Answer 6

India contributed £146 million to war effort
India experienced inflation and supply shortages during war due to their financial input

Question 7

How did the war have positive impacts on India’s trade and commerce?

Answer 7

India became less reliant on British imports as war boosted domestic manufacturing

Question 8

How did the war have positive impacts on Canada’s trade and commerce?

Answer 8

Economy benefited from war
Became more of an industrial power and less reliant on Britain
Closer investment links with US

Question 9

How did the war have negative impacts on Australia and New Zealand’s trade and commerce?

Answer 9

Ability to export food highly affected due to disruption to worldwide trade
Didn’t benefit from US

Question 10

What caused a turning point in British policy towards imperial trade in the inter-war years?

Answer 10

The Great Depression

Question 11

Impact of the Great Depression on British imperial trade policy

Answer 11

Much greater emphasis placed on importance of Empire for British commerce
Imports from the Empire increased
Britain forced to leave Gold Standard in 1931 but trade with Empire in sterling area proved great asset

Question 12

After WW1, what percentage of British trade did the Empire make up?

Answer 12

Made up 44% of British trade

Question 13

What percentage of Britain’s total imports were imperial imports in 1913 and 1934?

Answer 13

Imperial imports made up 25% of Britain’s total imports in 1913
35% of total imports in 1934

Question 14

What in relation to Empire and the economy significantly decreased from 1913 to 1934?

Answer 14

Value of British exports to the world and Empire

Question 15

What conference took place in 1932 as a response to the Great Depression?

Answer 15

Ottawa Conference

Question 16

What did Britain intend to return to as a result of the Great Depression?

Answer 16

Hoped to return to imperial preference

Question 17

Agreements made at the Ottawa Conference

Answer 17

Free trade abandoned and imperial preference set up
dominions formed a self-contained trading unit that was protected against foreign competition by high tariffs

Question 18

Effect of the Ottawa Conference

Answer 18

By 1938, the dominions sold almost 50% of their export goods to each other

Question 19

Economic impact of WW2: why was it inevitably going to be even worse than WW1?

Answer 19

Because going into WW2 Britain was in a significantly worse economic state than going into WW1

Question 20

Economic impact of WW2: Southeast Asia

Answer 20

Loss of colonies in SE Asia to Japan cut off supplies of vital raw materials from colonies such as India

Question 21

Economic impact of WW2:Economic impact of WW2: U boat attacks

Answer 21

U boat attacks devastated trade with 11.7 million tonnes of shipping being lost during WW2

Question 22

Economic impact of WW2: factories

Answer 22

The use of factories for war resources severely damaged exports

Question 23

Economic impact of WW2: arrangement with US

Answer 23

Lend-lease arrangement with US left Britain with massive debt

Question 24

Britain’s imperial policy as a result of WW2

Answer 24

Imperial control lessened in places where cost outstripped the value (India)
Colonial development focus to those that were deemed to benefit

Question 25

Crisis that took place in 1947 as a result of WW2

Answer 25

Sterling Crisis 1947
The weakness of Britain’s economy was revealed as free convertibility between the sterling and USD was suspended