Changing Imperial Trafe, Commerce And investment Flashcards
Why was imperial trade so important?
Around 1890 - Empire was key to Britain’s wealth
e.g India 20% of all of Britain’s exports went to India (£150 million)
e.g Canada 15% of wheat
Empire offered reliable markets and demand for British manufacturing
State some statistics to suggest that imperial trade was still important to Britain 1890-1914
1884- Imperial Federation League established in 1884 to promote closer colonial ties BUT disbanded in 1893, partially reflecting a waning interest in the Empire’s commercial importance
-25% of food was coming from empire
State some statistics to suggest that imperial trade was not important to Britain 1890-1914
-In 1894, Britain had imported 64 million hundredweight of wheat, 30.7 million from the USA, 17.2 million from Russia and only 3.6 million from Canada
-Less then 10% of food coming from empire
- ## In 1896 Britain’ trade worth £745 million but only £183 million came from Empire countriesIn 1897, the whole of tropical africa took only 1.2% of British exports
-with anti-imperalists arguing that Empire cost the middle class more then they benefitted as well as Empire being blamed for Britain’s lack in modernisation in it’s industries and preventing developments which would raise living standards
-as well as blundering British commercial enterprise by relying on rubber imports from Africa or Asia and domestic food production through importing colonial food produce
-Cost of Empire = increasing, although India was self-financing and white colonies relied on Britain for defence and the cost of maintaining empire outweighed any returns from it e.g Boer war 1998-1902 £250 million
How much did Britain invest overseas?
Between 1900-1913 British Investment doubled from £2 million to £4 million but not in Empire most being in USA, nonetheless London still “financial capital”
Why was the Gold standard so significant?
adopted by the bank of england in 1821 and by 1908 only China, Persia and a handful of Central American countries used the “silver standard” with gold standard had become the basis for new system= sterling standard
What was Joseph Chamberlain’s opinion on empire?
=pro-imperialist
Conservative MP, colonial secretary 1895-1903
-aimed to create an imperial custom union to boost trade, imposed protective tariffs against non-imperial goods
Benefits: promote and protect trade within empire
Drawbacks: Empire was not sufficient, opposed by manufactures and shipping companies, wealth came from free trade and international investment
What did Chamberlain recommended?
Imperial preference
What was imperial preference?
a system of free trade agreements between Dominions and colonies of empire by heavy tariffs to be imposed on foreign goods
=would sustain Britain’s position as a global power in response to increased competition in response to growing competition from the protectionist in Germany and USA
Was imperial preference imposed?
= Conservatives heavily lost the 1906 General Election
Public rejected Chamberlains proposal, convinced by the Liberal counter argument that the tariff reform would drive up food prices
Liberal gov= instead focused on free trade
MEANWHILE, elsewhere in empire
Australia, New zealand and South Africa imposed their own tariffs and Canada had trade agreements with other countries, In India a Swadeshi movement had begun a boycott of British goods and challenged the Raj after 1905
State a conclusion to Britain’s economic relationship with the Empire
-Imperial trade was foundation of British wealth in the 1800s and had sheltered Britain in the Long Depression, however other powers had caught up or exceeded Britain in industry as well as public rejecting “imperial preference” on 1906 however Britain did continue to sig invest in Empire to expand and consolidate its rule
What was the Mercantilism approach from the 16 th century to early 19th century?
partnership between Government and merchants aimed at maximising trade inside empire by weakening foreign rivals
e.g British East India Company
What were the advantages of the Mercantilism approach?
Increase political power and private wealth of mother country
-created captive markets for GB goods and blocked foreign access to these markets
What were the disadvantages of Mercantilism?
=for colonies
Dependency on Britain, unable to develop own economy and trading relations
What was the free trade approach from mid 19th century to early 20th century?
End of tariffs to allow for free trade, opening Britain up to imports of foreign raw materials and goods
What are the advantages of free trade?
Drop in food prices as cheaper imported wheat came from USA, Russia and Canada. Opened up new markets for GB goods overseas
What were the disadvantages of free trade?
Damaged British agriculture as smaller scale= no longer competitive
Fear of british jobs being lost once other nations industrialised and competed with own industrialised goods
What was Chamberlains preposed “imperial preference”?
System of free trade agreements between dominions and colonies of the British empire and tariffs on foreign goods
What were the advantages of the preposed “imperial preference”?
Supposed to protect British jobs against foreign competition and bring territories within empire closer together
What were the disadvantages of the preposed “imperial preference”?
would increase food prices by imposing an import on import tax on foreign wheat etc
Competitor nations would impose taxes on british products
