8. Trade and Commerce between the Wars Flashcards
Impact of WW1 on the British economy
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
Britain and the Gold Standard as a result of WW1
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
The value of Empire to British economy before and after WW1
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
Changing views of the value of Empire in the inter-war years
Empire treated as essential to the British economy after 1929 due to the Depression
The Gold Standard
Signal of a reliable and strong economy
Associated with national strength and stability
Political strength if your country is on it
How did the war have negative impacts on India’s trade and commerce?
India contributed £146 million to war effort
India experienced inflation and supply shortages during war due to their financial input
How did the war have positive impacts on India’s trade and commerce?
India became less reliant on British imports as war boosted domestic manufacturing
How did the war have positive impacts on Canada’s trade and commerce?
Economy benefited from war
Became more of an industrial power and less reliant on Britain
Closer investment links with US
How did the war have negative impacts on Australia and New Zealand’s trade and commerce?
Ability to export food highly affected due to disruption to worldwide trade
Didn’t benefit from US
What caused a turning point in British policy towards imperial trade in the inter-war years?
The Great Depression
Impact of the Great Depression on British imperial trade policy
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
After WW1, what percentage of British trade did the Empire make up?
Made up 44% of British trade
What percentage of Britain’s total imports were imperial imports in 1913 and 1934?
Imperial imports made up 25% of Britain’s total imports in 1913
35% of total imports in 1934
What in relation to Empire and the economy significantly decreased from 1913 to 1934?
Value of British exports to the world and Empire
What conference took place in 1932 as a response to the Great Depression?
Ottawa Conference
What did Britain intend to return to as a result of the Great Depression?
Hoped to return to imperial preference
Agreements made at the Ottawa Conference
Free trade abandoned and imperial preference set up
dominions formed a self-contained trading unit that was protected against foreign competition by high tariffs
Effect of the Ottawa Conference
By 1938, the dominions sold almost 50% of their export goods to each other
Economic impact of WW2: why was it inevitably going to be even worse than WW1?
Because going into WW2 Britain was in a significantly worse economic state than going into WW1
Economic impact of WW2: Southeast Asia
Loss of colonies in SE Asia to Japan cut off supplies of vital raw materials from colonies such as India
Economic impact of WW2:Economic impact of WW2: U boat attacks
U boat attacks devastated trade with 11.7 million tonnes of shipping being lost during WW2
Economic impact of WW2: factories
The use of factories for war resources severely damaged exports
Economic impact of WW2: arrangement with US
Lend-lease arrangement with US left Britain with massive debt
Britain’s imperial policy as a result of WW2
Imperial control lessened in places where cost outstripped the value (India)
Colonial development focus to those that were deemed to benefit
