Changing nature and extent of trade Flashcards
(52 cards)
Protectionism
Taxes or prohibitions on imports and exports designed to protect domestic producers. By restricting or prohibiting the sale of foreign goods, governments provide an advantage to their own produces, although a lack of competition can lead to high prices
Mercantilism
A policy of government intervention to ensure that the value of exports is more than the value of imports- known as a positive balance of trade. To acquire gold or silver bullion through positive balances of trade.
Free trade
An alternative system to mercantilism whereby import and export taxes are minimised to allow merchants to compete across borders. The removal of restrictions favours merchants who can produce the cheapest goods, but risks driving others out of business.
Scramble for Africa
A period of rapid imperial expansion (1881-1914) during which European powers divided and colonised almost the entire continent of Africa.
Triangular trade
A trade route between 3 regions- slave trade between Europe, West Africa and the Caribbean.
Quaker
A religious minority who translated their Christian faith into progressive political positions, e.g. abolition of the slave trade, opposition to war and charity to the poor.
They organised the first abolitionist movement in Britain in 1783.
Grass-roots campaign
A type of political lobbying aimed at winning the support of the public rather than directly influencing politicians. The Quakers and William Wilberforce organised one to increase pressure on parliament.
The Slave Trade Act
1807- abolished the transatlantic slave trade
Continuation of slavery
Although the slave trade had been abolished in 1807, slavery in the West Indies continued until 1834.
Positive balance of trade
A trade surplus
Negative balance of trade
A trade deficit
Inflation
A reduction in value due to oversupply
Adam Smith
Published his book ‘An inquiry into the nature and causes of the wealth of Nations’ in 1776. He argued that import and export tariffs prevented trade from operating effectively by constraining merchants.
The adoption of free trade
It was a slow process. Ireland demanded free trade and Adam Smith recommended that they should be allowed to trade freely. In 1779, the government removed trade restrictions on Ireland.
Problems in Ireland
Britain had tariffs to reduce Irish competition. But the Irish economy grew due to large estates, excellent grazing land and cheap labour. By 1790, in Dublin, exports reached £4.9m and imports £3.8m. This indicated a positive balance of trade.
Corn laws
Designed to keep grain prices high by excluding foreign grain from British markets.
Tories
They supported traditional social values. A set of individuals characterised by their support of the monarchy and a traditional way of life. They held power from 1783-1830.
Whigs
They represented more progressive policies, such as electoral reform, free trade and the abolition of the slavery. They were initially dominated by wealthy landowners influenced by enlightenment ideals, but overtime attracted manufacturers and middle-class support. They gained power in 1830.
Representation of the People Act
1832- Introduced by the Whigs. It made constituency boundaries more representative and extended the electorate by around 250,000 people.
Anti-Corn Law League
1838- It was founded by advocates of free trade and developed into a powerful lobby by holding mass meetings attended by thousands of men where protectionist policies were denounced.
Conservative Party
Founded by Sir Robert Peel in 1834. An uneasy coalition of ‘old tories’- who opposed freed trade and the ‘Peelites’- who supported it. In 1841, they secured the majority and Peel became Prime Minister. Over 1,200 imports tariffs were abolished between 1842-1846.
Navigation Acts
They were passed between 1651 and 1673 to protect British interests and govern trade. Colonial goods produced for export could only be carried on English-built and owned ships. Certain goods (sugar, cotton, tobacco) had to be shipped to an English port even if the were to be exported to another European destination. European imports to British colonies needed to land at an English port and then be reshipped onwards.
Salutary neglect
The ‘light-touch’ approach by the British government and tax collection until the 1760s. Under this system, the Navigation Acts were not too strictly enforced and the local management and settling of local taxes rested in the hands of governors and local assemblies.
The repeal of the Navigation Acts, 1849
After Peel removed man tariffs, the sugar duties and Corn Laws still remained. He finally abolished these in 1846. The abolition of the sugar duties led to economic decline in the West Indies. The abolition of the Corn Laws did not help Ireland, who had no money to buy grain by 1846. Over 1 million people died in Ireland between 1845 and 1852, and another 1 million were forced to emigrate.