ADOPTION OF FREE TRADE 1846

Question 1

What were the political reasons for the adoption of free trade?

Answer 1

Whigs and great Reform Act 1832 extended electorate by 60% which increased middle class, industrial class in Parliament who opposed protectionism

Question 2

What were the economic reasons for the adoption of free trade?

Answer 2

Trade recession and unemployment in early 1840s made Peel use FT for economic review through global movement of British goods

Urban cities needed cheap food imports for their growing population- grown by 50% 1810-41, Peel feared he couldn’t keep them fre without lowing tariffs on food imports

Question 3

How did individuals and ideology encourage the adoption free trade?

Answer 3

1776, ‘The Wealth of Nations’ by Adam Smith, FT ideas had an immediate impact on economic thinking

Question 4

How did foreign rivalries encourage the adoption of Free trade?

Answer 4

Loss of American colonies in American revolution forced a change in thinking and economic policy to keep them as trading partners after independence

Question 5

What was the significance of the adoption free trade?

Answer 5

1850-1910 trade increased 10x

Unlocked the industrial revolution

Pitt ended high duties on teas so more customers brought official tea- cut smugglers profits and cut the policing costs on illegal tea trade

Where colonies produced goods more cheaply than Britain, this lowered the cost for British consumers, e.g, Britain got cheap imports of raw cotton from the USA

Question 6

Why was the adoption less significant?

Answer 6

Was a slow trend which took until 1820 to really change

Some duties which remained- tobacco, tea produced 95% of the revenues from custom in 1880, so relied on them