economy -1851-1914

Question 1

schumpeters model of capitalist growth

Answer 1

-innovation by product-automobile
-innovation by process-steam powered machinery
-innovation by market-share in domestic market & foreign ones.
-innovation by material e.g coal
-innovation by organisation -free trade, limited liability companies, gold std.
-these dynamically interact and create demand, supply & thus growth.
e.g Victorian trains involved steam engine which needed coal, this

Answer 2

British industry -comparative adv relative to other nations that produced further growth.
-workshop of the world, 1st industrial nation.
-extensive railway network

Question 4

railways

Answer 4

-massive growth before 1851, but still contributed to it after -stimulated demand for coal, iron & steel, facilitated urbanisation, movement of industrial material, goods to ports for X.
-stimulated tech innovation-steel rails replaced iron ones, huge workshops built in Glasgow, Manchester & Leeds

Question 5

examples of how they dominated the world econ

Answer 5

-41% of total manufactured global goods (Germany-19% & USA-3%), 25% world trade passed through B ports.
-1/3 of X to empire & USA.

Question 6

city of london

Answer 6

-center of global finance

Question 7

agriculture -positives

Answer 7

-high farming sought to modernise & reorganise farming so it could survive challenges of cheap M.
-fertilisers (guano), mixed farming, drainage improvements & cheap labour, seed drills, steam ploughs -increase agricultural productivity.
-golden age-1851-73 -high global transport costs- prices of foreign grain didn’t fall so didn’t threaten British arable farmers, good weather-bumper crops.
-growing urban market linked to farms by railways increased market penetration & livestock & dairy prices rose by 20-50%.
-richer farmers modernised.

Question 8

agriculture -negatives

Answer 8

-high farming only suited big farms-300 acres or more but average farm was 111 acres.
-most farming done by small & medium sized farms-lack of capital, education & high rents-so most avoided high farming.

-guano imports rose to 200,000 tonnes by 1847.
-imports of wheat rose from 1/4 to 1/2 of total consumption-1850-1870 & wool imports doubled.
-1890-1900 cost of carrying grain from USA fell by 75% & refrigerated shipping developed.
-drainage could increase yield but expensive.