Lecture 10 : The Colonial World Economy

Question 1

How did the mercantilism come to an end ?

Answer 1

by the political and intellectual conflicts

Question 2

What century is the first global century ?

Answer 2

19th century

Question 3

by how many percent did the trade increase between 1500-1800 yearly ?

Answer 3

1%

Question 4

by how many percent did the trade increase during the 19thc

Answer 4

4% damn

Question 5

What are the 6 novelties ( drivers ) of the trade boom of the 19th C

Answer 5

Free trade

Industrial Revolution

Transport and communication

innovation

Gold Standard

international migration

peace

Question 6

During what century does the third world become at the end of the world economy list ?

Answer 6

19thc

Question 7

When did the Uk decide to go for free trade

Answer 7

1860

Question 8

What did the free trade decision by the uk lead to ?

Answer 8

it created a ripple effect : many countries followed with free trade after uk. by 1875 : 50 bilateral agreements So it was the end of the mercantilism

Question 9

What was the impact of the industrial revolution

Answer 9

it allowed manufacturing + trade so it could acommate more people and increase the income devoted to purchasing things More profits = more suplus = invested into trade, surplus and innovation Trade gives rise to innovation, which gives rise to trade , etc

Question 10

What does free trade mean ?

Answer 10

Free trade is a policy followed by some international markets in which countries’ governments do not restrict imports from, or exports to, other countries

Question 11

What are the outputs of the novelties in communication as well as in transportation

Answer 11

countries could now transport more staples and goods of low value ( with the shift of the sailing era to the steam ships era ) ( railways + ports + canals = allowed greater transport as well. ) so theres a greater demand from conummers hbecause they can afford those goods now.

Question 12

what are the cosnequences of the telegraph in 1844

Answer 12

information moves fast = vital for trade. Information is known is the new world within minutes intead of having to wait for a boat to bring the info.

Question 13

goods produced in the 19thC ?

Answer 13

increae of cotton, coal, foods, fuel, etc etc etc

Question 14

Cons of the adoption of the gold standard

Answer 14

Each country currency could be then put in a gold value

Question 15

Consequence of international migration

Answer 15

lots was based of slavery, unfortunatly New : but a large amount of the flow was based on voluntary migration 15,000 people moved out of Europe because they wanted to go to the New World Ex: potato irish family

Question 16

Cons of Peace

Answer 16

well wars are never good for commerce vitall to trade expansion

Question 17

Explain the impact of the industrial revolution on the middle class

Answer 17

increase of production increase of trade flows decrease of product prices free trade greater availability of consumption : +++ demadn from the middle class Middle class is better offf

Question 18

Profit Possibilities of the Atlantic triangle

Answer 18

bc indigenous were dying by the diseases of the explorers were bringing, economically, no profts were possible with human labor. The only profit possibiblity = land

Question 19

Picture of the Atlantic triangle

Answer 19

Question 20

Main important shits in the mid-19th C (2)

Answer 20

Many republics of the new world become indepedant of Spain + Portugal

British East India Compagnies had sovereign over India and had sominions overIndia.

Tea doe not come from China but from India now.

Question 21

What are the two major waves of colonialism ?

Answer 21

16th-19th C

19th - early 20th C

Question 22

What id the focuss during the first wave of colonialism

Answer 22

16th - 19th C : portugal + spain = focusses on gaining land

Question 23

What is the focuss on the second wave of colonism

Answer 23

way more competitive

The scramble for africa

scramble in south East Asia

in 1914, British Empire owned 1 fourth of thw Wordl Land

Question 24

What are the roles of the colonies during the 19th C ?

Answer 24

New ressources

to be able to keep up neith the increasing demand from Europe ( becauze the middle class lives better off now)

New markets for industrial goods

new investment opportunities

safety value for exacess population

Question 25

How is the colony a new source of ressources and revenues

Answer 25

taxes revenu

cross-border trail

a deficit in one place balances the surplus in the other place.

vice-versa

Question 26

explain that the colony represents new markets for industrial goods

Answer 26

things are produced and shiiped much more cheaply

For a country that wants to keep growing. it has to incorporate new consummers.

Colony = +++++ consuption

= increase of sales x 10000

Question 27

Explain : new investments oppotunities in the colony

Answer 27

new opportunity for investors

Ex : railraods + tea plantation open up the satge to new investments

Question 28

Explain : safety value

Answer 28

well ppl needed to go smw

safe place to go work

Ex :potato family

Question 29

What are the consequences of the colonialism

(5)

Answer 29

1) Population of indigenous peoples

90% of the indigenous ppl of Austrilia died

as well as

90%of the indigenous ppl of South America

iiiiiii Colonial Legacy !!!!!!

2) Economic ‘‘centering’’ on primaryu products for export
3) Formation of a dual societ
4) Uubanization :

port cities and railways

5)Nation-State

Question 30

What are the outcomes of the trade boom

Answer 30

1) Economic growth

increasing GDP 2% per year with the market integration

2) Market integration + Price conversion

1 price rule

bc of the innovations in tranportation

3)Income divergence ( between and within a country)

see picture

Before 1820 : GDP is driven by the rise of population

After 1820 : shift towards innivation and productivity drives the GDP

Question 31

definition of autarky

Answer 31

self-sufficiency