Lecture 10 : The Colonial World Economy Flashcards
How did the mercantilism come to an end ?
by the political and intellectual conflicts
What century is the first global century ?
19th century
by how many percent did the trade increase between 1500-1800 yearly ?
1%
by how many percent did the trade increase during the 19thc
4% damn
What are the 6 novelties ( drivers ) of the trade boom of the 19th C
Free trade
Industrial Revolution
Transport and communication
innovation
Gold Standard
international migration
peace
During what century does the third world become at the end of the world economy list ?
19thc
When did the Uk decide to go for free trade
1860
What did the free trade decision by the uk lead to ?
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
What was the impact of the industrial revolution
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
What does free trade mean ?
Free trade is a policy followed by some international markets in which countries’ governments do not restrict imports from, or exports to, other countries
What are the outputs of the novelties in communication as well as in transportation
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.
what are the cosnequences of the telegraph in 1844
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.
goods produced in the 19thC ?
increae of cotton, coal, foods, fuel, etc etc etc
Cons of the adoption of the gold standard
Each country currency could be then put in a gold value
Consequence of international migration
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
Cons of Peace
well wars are never good for commerce vitall to trade expansion
Explain the impact of the industrial revolution on the middle class
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
Profit Possibilities of the Atlantic triangle
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
Picture of the Atlantic triangle
Main important shits in the mid-19th C (2)
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.
What are the two major waves of colonialism ?
16th-19th C
19th - early 20th C
What id the focuss during the first wave of colonialism
16th - 19th C : portugal + spain = focusses on gaining land
What is the focuss on the second wave of colonism
way more competitive
The scramble for africa
scramble in south East Asia
in 1914, British Empire owned 1 fourth of thw Wordl Land
What are the roles of the colonies during the 19th C ?
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
How is the colony a new source of ressources and revenues
taxes revenu
cross-border trail
a deficit in one place balances the surplus in the other place.
vice-versa
explain that the colony represents new markets for industrial goods
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
Explain : new investments oppotunities in the colony
new opportunity for investors
Ex : railraods + tea plantation open up the satge to new investments
Explain : safety value
well ppl needed to go smw
safe place to go work
Ex :potato family
What are the consequences of the colonialism
(5)
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
What are the outcomes of the trade boom
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
definition of autarky
self-sufficiency
