Section Two-Trade and Commerce

Question 1

How did Britain benefit from the Empire economically?

Answer 1

• As empire grew, British exports increased from 21.2% in 1871-75 to 37.2% in 1913
• Britain imported vast quantities of wheat and beef from Canada, lamb and dairy from NZ and cheese, apples and potatoes from Empire overall
• British breweries also gained from colonial trade and some beers were specially developed for colonial conditions e.g. India Pale Ale

Question 2

How did Britain suffer from the Empire economically?

Answer 2

• Within Britain, middle classes were facing an increased tax burden due to maintenance and defence of the empire
• Growth of Empire in this period was expensive to secure but offered little returns in terms of trade e.g. whole of Tropical Africa only amounted to 1.2% of British trade
• Growing nationalism in Empire led to trade being damaged e.g. in India, which took 20% British exports there were strikes and boycotts showing it was volatile not ‘safe’

Question 3

Who was Joseph Chamberlain?

Answer 3

• Created idea for ‘Imperial Preference’
• Great supporter of the Empire
• Colonial secretary from 1895-1903

Question 4

What is Imperial Preference?

Answer 4

Britain and its Empire would trade together freely but they would all protect themselves from foreign competition

Question 5

How would imperial preference been beneficial?

Answer 5

Would have given boost to imperial trade through protective tariffs against imports from non-imperial powers; also would be strategically reliable in times of emergency

Question 6

Opposition to Imperial Preference?

Answer 6

• Manufacturers who traded mostly with non-Empire wanted to stop this as it might reduce profits
• People pointed out Empire was not completely self-sufficient so might cause problems
• Bankers and investors with business links with non-Empire countries objected

Question 7

Why did Imperial Preference ultimately not work?

Answer 7

1906 General Election gave Liberals a massive landslide victory and Balfour Unionist Government was defeated

Question 8

What was the aftermath of Imperial Preference not working?

Answer 8

• Many dominions disappointed when Imperial Preference was not implemented
• Australia, NZ and SA all imposed own import tariffs as means of asserting nationalist interests over any loyalties or ties to Britain
• Some looked for trade agreements with other countries instead e.g. Canada made its own trade agreements with Germany, France, Italy and Japan