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Alevel British Empire > Chapter 15 - Trade, Commerce And The Economic Impact Of War > Flashcards

Chapter 15 - Trade, Commerce And The Economic Impact Of War Flashcards

1
Q

Did B win ww1 + ww2?

A

Yes

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2
Q

What did the wars do?

A

Weakened B economy
Reduced ability to pay for the empire

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3
Q

How much did the war cost?

A

35 billion

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4
Q

How much had to be borrowed from the USA?

A

4 billion

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5
Q

What were the effects of the war on the economy?

A

Britain was in debt
Much of capital overseas investment wiped out
Pound sterling removed from gold standard as gold reserves ran low

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6
Q

What was the gold standard?

A

Where notes of money were backed up by reserves of gold
The notes could be exchanged back with gold

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7
Q

What effect did the war have on export industries?

A

Production for war was prioritised
Meant B competitors won markets usually dominated by B exports

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8
Q

What markets were difficult to win back?

A

Textiles
Shipbuilding
Coal
Iron
Steel

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9
Q

What was an example of this competition?

A

The Japanese textile production

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10
Q

What was the effect on the financial sector?

A

Less ability to borrow from banks
Economic burden of Empire grew

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11
Q

What was the problem intensified by?

A

Great Depression - collapse of international trade + markets

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12
Q

When was the Great Depression?

A

1930’s

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13
Q

What happened in 1931?

A

A financial crisis forced the country off the gold standard
This reduced earnings from oversea investment

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14
Q

How did the war effect India?

A

They contributed £146 million
Had inflation + shortages
Imports from B fell
Indian manufacturers had more of the domestic market

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15
Q

What did B impose on India for higher revenue?

A

Increased taxes
1917 - 11%
1931 - 25%

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16
Q

What was the effect of war in Canada?

A

They benefitted
Became industrial power
Looked more to USA for investment + markets

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17
Q

What was the effect of war in Australia + New Zealand?

A

Relied on B market as exporters of food
Hit hard by disruption of trade

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18
Q

What was B policy towards imperial trade in 1920s?

A

Wanted to recreate system before 1914
Returned to gold standard 1925 to stabilise international trade
Colonial Development Act of 1929 - gave treasury funds to support colonial development projects

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19
Q

What was the policy after the Great Depression?

A

More importance on Empire for commerce
Imports from Empire increased
Abandoned gold standard 1931

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20
Q

What did most countries in the empire fix the value of their currencies to?

A

Sterling

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21
Q

What did this create and give B access to?

A

The Sterling Area

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22
Q

What was the empire used for?

A

To soften the impact of the international economy + great depression

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23
Q

What was the total value of exports to the empire?

A

1913 - £195 million
1934 - £166 million

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24
Q

What was the biggest export going to the empire?

A

Motor vehicle exports
1913 - 67.4%
1934 - 71.7%

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25
Q

What were other big exports to the empire?

A

Cotton
Locomotive
Railway carriage
Motor vehicles
Electrical engineering

26
Q

Why was exports of the prominent textiles industry decreasing?

A

Competition from Japan

27
Q

What was suggested for a return of by imperialists like Lord Beaverbrook?

A

Return of ‘imperial preference’

28
Q

What did this end?

A

Free trade

29
Q

Who opposed this?

A

Dominions
They wanted to protect their own growing industries

30
Q

Where was a compromise reached?

A

Ottawa Conference 1932

31
Q

What was said in the Ottawa Conference 1932?

A

B introduced 10% tax on all imports but Crown Colonies exempt
B + Dominions gave each others exports preferential treatment

32
Q

What did this reinforce?

A

Importance of empire supplying foodstuffs + raw materials

33
Q

What was the total value of B imports from the empire?

A

1913 - £191 million
1934 - £257 million

34
Q

What was the biggest percentage Britain had of imports coming from the empire?

A

Jute imports
1913 - 99.4%
1934 - 98.8%

35
Q

Who became more important for B exports + supplier of imports?

A

Dominions

36
Q

Who reduced the amount of B exports they sent?

A

India
Still exported tea + jute

37
Q

What were the total imports and exports from and to the British?

A

Exports:
1909 - 35%
1938 - 41.3%
Imports:
1909 - 26.9%
1938 - 41.2%

38
Q

Who experienced serious economic problems in the inter-war period?

A

Australia
New Zealand

39
Q

Why were they struggling?

A

Cost of imports outstripped income from exports
They ran up debts with B
Meant imperial preference was more important

40
Q

What did the debt to B increase in Australia?

A

Support for independence in the Australian Labour Party

41
Q

How did Burma suffer in the collapse of the world trade in 1930s?

A

Relied on exports of rice

42
Q

How did Malaya suffer in the collapse of the world trade in 1930s?

A

Relied on exports of tin and rubber

43
Q

How did other African colonies also suffer?

A

Prices reduced for the food + raw materials they were producing
Incomes fell = poverty + starvation
Fuelled dissatisfaction with colonial rule

44
Q

Which war impacted B more?

A

WW2

45
Q

Why was B economy weaker for WW2?

A

Entered war in a far weaker condition
Defeats in West + Far East were expensive

46
Q

What impact did attacks with German U-boats have?

A

Lost 11.7 million tons of shipping
54% of merchant fleet strength lost in beginning of the war

47
Q

What event cut off supplies of vital raw materials?

A

Loss of major colonies in South East Asia to the Japanese
Cut off supply of rubber from Malaya

48
Q

Why was B balance of trade in heavy deficit?

A

Diversion to producing weapons
Less produced for export
B tried to reduce imports - campaigns to support home production + rationing

49
Q

How many of B oversea businesses were sold to pay for the war?

A

1/3
Borrowed from USA 1941 in for of Lend-Lease
Came out with massive debt

50
Q

What is a Lend-Lease?

A

Arrangement in WW2 where USA supplied B with weapons, food + other necessities

51
Q

Who did B depend on more for imports?

A

The Empire
There was big investment from colonial govts to help food + raw materials

52
Q

What helped B pay for the war effort?

A

Colonial reserves (‘sterling balances’)

53
Q

When did the USA end the Lend-Lease?

A

Aug 1945
They didn’t want to support a revived BE

54
Q

Who negotiated a new deal for a US loan?

A

John Maynard Keynes
Got £900 million

55
Q

What were the conditions for the loan?

A

The pound sterling had to be made freely accessible to dollars by Spring 1947

56
Q

Who was John Maynard Keynes?

A

Economist
Argued govt should play active role in managing economy
Major advisor to the wartime coalition + post war Labour govts

57
Q

What was the Sterling Crisis of spring 1947?

A

US loan was meant to help free convertibility from £ to $ at a fixed rate
B nearly ran out of $ reserves within 6 weeks - had to suspend convertibility

58
Q

What approach did B take to re-establishing it’s world power?

A

Dual approach
If the cost of controlling a colony outweighed its value - control abandoned
If colonies had economic benefit - more colonial economic development

59
Q

Where did they want to develop economically?

A

Malaya
For tin + rubber industry

60
Q

What Act formed the foundation for this approach?

A

The Colonial Development and Welfare Act 1940

61
Q

What did this Act do?

A

Wrote off some colonial debts
Provided grants up to £5 million/year

62
Q

What did the further CDWA 1945 do?

A

Increase aid to colonies to £120 million over 10 years
Each colony had to product 10 year plan on how it would use the funds

Alevel British Empire (24 decks)

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