BACKGROUND Flashcards
What did Britain emerge as victorious in 1763? What did this leave government in?
(What GDP%?)
-Britain emerged victorious from the Seven Years War in 1763 but with masses of government debt -157% of GDP.
What two wars following the Seven Years War of 1763 saw a rise in gov’t debt?
What did debt rise to (GDP%) in 1821?
-This was replicated during the American War of independence and the Napoleonic Wars.
-Debt rose to 260% of GDP in 1821.
What two economic theories applied to government trade policy in the early 19th century? Explain them!
-Mercantilist : the value of exports was kept higher than the value of imports in order to keep a positive balance of trade (trade was seen as finite).
-Protectionist: taxes were imposed on imports in order to protect domestic producers from being undercut by importers.
Over time what was adopted instead of Mercantilist & Protectionist style policies?
How did Britain make other nations abolish import duties?
Why?
-Over time free trade was adopted instead. Britain used diplomacy or coercion to make other countries abolish import duties too as this favoured cheap, industrially-produced British goods.
Were colonies still seen as as vital for trade by the mid 19th century?
-NO. Other European powers began to seek increased geopolitical influence. Colonies were no longer seen as vital for trade but as a symbol of imperial status.
