Causes of Trade Policy Change

Question 1

Abolition of the slave trade as the most significant impact in changing the pattern of trade

Answer 1

By 1800 loss of profit and disease in slaves (1/10 ships would lose profit in 1778)
Liverpool slave merchants lost £700,000 in 1778
Slave rebellions in Haiti 1791-1804 reduced profits

Question 2

Purchase of the Suez Canal shares as the most significant stimulus to British Trade

Answer 2

Disraeli bough Khedives 44% shares for £4m -> dividends on these shares was 33% by 1900.
Meant steamships on Europe-Asia route now became more competitivemnl

Question 3

Acquisitions of Signapore (1819) and Hong Kong (1842) made the most significant contribtuion to the development of British commercial interests

Answer 3

• Signapore - EIC retained control of trade with China -> high demand silk, tea and porcelain. HOWEVER, condition to trade with China not ideal though (now allowed to trade outside of ports with the “Hongs”), only way to reach Canton from India was the straits of Malacca (already colonised by the Dutch) -> trade route between two was long, expensive and full of pirates. Overall helped problems with trading with China but did not solve them
  Hong Kong - trade between India and China continued to be effected by pirates -> Britain traded wool and indian cotton for tea, porcelain and silk -> Chinese didn’t want these so British traded silver (less profitable) -> turned to import opium -> importing 2553 tons despite imperail ban annually by 1842, 12m chinese addicted

Question 4

Trade with the Americans played the most significant part in the expansion of British trade

Answer 4

Change in thinking and economic policy by Britiain in order to keep them as trade partners
Britain received American exports due to free trade -> got cheap imports of raw cotton and became the largest producer of manufactured cotton products -> proved British manufacturing could prosper without protection

Question 5

Significance of the Anglo-Dutch Treaty in 1824

Answer 5

Agreed territorial rights
1819-24 400,000 Spanish dollars to 11 million in 5 years
Britain gave up Bencoolen and Sumatra to Dutch instead of Signapore

Question 6

Opening up of Shanghai to trade in 1842 was the most significant evet in the development of British trade routes

Answer 6

Treaty of Nnaking 1842:
Chinese ordered to:
- Pay £6,000,000 comepnsation for opium
- £12,000,000 reparations for cost of Opium War
- Hong Kong to Britain in perpetuit
- Open ports of Amoy, Foochow, Ningpo and Shanghai to western traders
- Britain could now set up self-governing settlements elsewhere and trade up the Yangtze river
Led to Opium exports reach 6,500 tons annually by 1880 and violence broke out in 1850 with the Taiping Rebellion that led to 20-30 million Chinese dying

Question 7

Significance of the repeal of the Navigation Acts

Answer 7

Repealed in 1849

Question 8

Significance of the acquisition of Zanzibar