Trade Flashcards
What was protectionism?
A policy of ‘protecting’ trade of a country or empire by imposing tarrifs on foreign goods
What was mercantilism?
An economic policy of maximisimg exports to achieve a positive trade balance, using protectionism
What is free trade?
A policy of removing all tarrifs on imports and exports; having open compeition
Why was British debt growing between 1763 and 1821?
War - first the 7 years war, resulting in government debt being 157% of GDP in 1763 - rose to 260% in 1821 as Britain struggled to pay for the American war of independence, the French revolutionary wars and the napoleonic wars
Why did the standardisation of trade help Britain in the mid-19th century?
helped many British merchants as they could produce manufactured goods that were far cheaper than those of their rivals. by the mid 19th-century, British trade dominance extended for beyond Britain’s directly managed colonies, into China and South America.
What did the colonies come to be seen as by the great powers and what did this lead to Britain doing?
Colonies became seen as inherently valuable by ideological imperialists in Europe and Britain, leading to a frenzied period of colonisation on the weakest of pretexts, characterised by the scramble for Africa. Britain began to appropriate territory simply to prevent other powers from doing so.
Outline why the slave trade was important to Britain
Allowed for trading within the American colonies - allowed for sugar and tobacco to be shipped to Britain - a large part of society.
Up to 1800s - was seen as critical to British economic power - sugar was the largest import
Outline the triangle trade
Shows Britain’s domination of the slave trade
Slaver’s vessels sailed from England - traded goods such as textiles, alcohol and firearms for slaves at West African ports - they were then taken to the Caribbean where they were sold. In payment the slavers took raw materials such as sugar and cotton then took this back to Britain to sell.
Outline the influence of the ruling class on the slave trade
The government placed taxes and tariffs on the slave trade and used this money to finance the Royal Navy and Wars.
1766 - estimated at least 40 members of parliament had financial interests in the slave trade
The church of England owned a slave plantation in Barbados
The capital needed to buy a slave ship was provided by English bankers, thus many of the English gentry indirectly invested in the slave trade this was and relied on the profits for the payment of loans
Which were the main slaving ports of Britain - add stats
Bristol, Liverpool and Glasgow - by the 1790s, 120-130 slave ships a year sailed from liverpool, making it the main port for the slave trade in the world.
Why was there never a shortage of demand for new slaves?
They were treated appallingly - many did not survive and the birth rate was low
Outline the humanitarian/pubic pressure factors that led to the abolition of the slave trade
Rise of evangelical Christianity - Methodists & Quakers opposed slavery
Public campaigns - e.g. entrepreneur Wedgewood designed protest plates
Abolitionist campaigning in the country - NAtional petition campaign of 1788 resulted in over 500 petitions being sent to parliament
Increasing slave resistance
Outline the political and international factors in the abolition of the slave trade
when French reintroduced slavery, British favoured abolition to destabilise the French (When foreign slave trade Abolition Bill was introduced in 1806, it was presented as an anti-French measure to the house of commons)
More support for abolition in the house of Commons - new liberal Irish MPs supported abolition and Lord Grenville (PM in 1807) threw all his weight behind Slave Trade abolition bill in House of Lords
When was the slave trade abolished in Britain?
1807
Outline the economic factors which led to the abolition of the slave trade
World over-supply of sugar - could be sourced without slavery at lower cost from other colonies
Plantation owners suffered some decline in profits - but was still a profitable trade - 40% Bristol’s income came from the trade
Financial uncertainty - threat of slave rebellions, disease, losses to foreign privateers during wars
1 in 10 ships during 18th century lost its owner profit - in 1778 merchants in Liverpool lost £700,000
What were the political barriers to the abolition of the slave trade?
The government benefited from the slave trade through taxes and tariffs
It created a large pool of skilled sailors who could be recruited into the Royal Navy during the frequent manpower shortages
Which was the most important factors in the abolition of the slave trade?
Political and international factors
When was slavery abolished in most British colonies? What was the name of the act?
slavery abolition act - 1833
What was the situation regarding the abolition of the slave trade in 1802?
It now favoured the abolitionists - Napoleon had seized power in France and attempted to restore slavery - the ex slaves resisted and fought against the French
What was the significance of the ex-slaves resisting Napoleon in 1802?
This caused public support for the abolitionists and they were now aligned with the French
What happened in 1789 regarding the French slaves?
French revolution followed by slave rebellion on Saint-Domingue - French responded by freeing their slaves in the colony - Britain reacted by invading the colony - emancipation seen as ‘pro-French’ so politicians and public turned against it
What were the immediate affects of the slavery abolition act of 1833?
Freed more than 800,000 enslaved Africans in the Caribbean, South Africa and Canada
What were the effects of the abolition of the slave trade 1807 on British involvement in slavery?
Millions of Africans were exported as slaves after 1808, many of them carried in ships financed, built or equipped in Britain. British investment continued in places where slavery remained legal, e.g. Cuba and Brazil
1840s - 20% British sugar imports came from Cuba
Industrial midlands and LAncashire imported vast quantities of raw cotton from the USA and Brazil, where it was grown by slaves.
What were the effects of the abolition of the slave trade 1807 on British involvement in anti-slavery
From 1815-1865, British Royal Navy undertook anti-slavery patrols off the West African coast, seizing hundreds of vessels
Britain forced to pay compensation for seized ships.
Limited impact: By 1840s, only 10% British ships dedicated to stopping slave trade and by 1870 only 22% of the ships were intercepted
What were the wider commercial effects of the abolition of the slave trade 1807?
Some decline of ports of Bristol, Glasgow and Liverpool
British industries continued to benefit from cheap, slave produced goods e.g. sugar from Cuba, coffee from Brazil and raw cotton from US
Abolition strengthed commercial ties with North America and gave boost to free trade
What were the negative effects of the abolition of the slave trade 1807 on plantations in the Caribbean?
When faced with a labour shortage, increased use of women and children - cheap indentured workers from India and CHina began to replace African slaves.
as the cost of labour rose, the profitability of the Caribbean plantations reduced - hard to compete with slave run producers in the US, Cuba and South America
What were the positive effects of the abolition of the slave trade 1807 on plantations in the Caribbean?
Triangle trade declined and was no longer so central to British commerce
Planters invested in new machinery and cared for slaves better in order to retain a healthy work force
What were the effects of the abolition of the slave trade 1807 on British outlook on trade?
Britain turned its back on mercantilism and increasingly favoured free trade -
The Act meant Britain merchants had to find new ways of making money and therefore sought out new markets and new trade routes, leading to the expansion of British trade outside of the Empire and into the Americas
Why did mercantilism remain the main policy in Britain for so long?
thought it was the best way of protecting British industry and promoting growth, keeping the valuable raw materials of the colonies in Britain’s hands - Britain and other European countries were mainly producing agricultural products, competing in the same fields, so it appeared to make sense.
Why did the view that Mercantilism was best change?
Britain was rapidly advancing as Europe’s leading industrial power and so needn’t fear competition
1819 - Singapore established as British free port - proved the success of free trade
USA’s removal of tariffs and controls and maintained prosperity (one of Britain’s most profitable trading sectors )
What were Adam Smith’s economic ideas?
Free market economy - demands of the market should have final say
Critical of import duties and government regulations
Proposed a theory of an economic cycle built upon self interest which would promote a developing economy
Self regulating market
In what ways did Adam Smith have an impact?
1779 - government consulted him on how to respond to Irish demands for free trade
Pitt - influenced by Smith to agree new trade treaty with France in 1786 reducing tariffs on oil and wine - further agreements were reached with Spain and Portugal
In what ways was Adam Smith’s impact limited?
1786 Navigation Acts were strengthened to ensure American shipping excluded from the West Indies
1815 corn laws passed - designed to keep grain priced high by excluding foreign grain from British markets
Outline the Industrial/technological factors in the move to free trade
1800-1850 Britain became leading global industrial power
1851 UK produced 2/3 the worlds coal and more than 1/2 the cotton cloth.
They also had far more advanced transport systems and access to plentiful raw materials
Britain harnessed the use of steam power before its rivals.
Outline the affect of demographic change in the move to free trade
19th Century - Britain had become an urban society - 1750 -15% live in towns, 1900 -85%
Meant most British citizens no longer produced their own food and the country became more dependent on imported food
1846 - Britain grew 3/4 its grain, by 1914 that was less than 1/5
By 1913, raw cotton was no longer the main import - Food was - especially wheat, barley and frozen meat
Outline the social factors in the move to free trade
Political campaigners had been exposing the extent of urban poverty and in 1840s the newspapers carried moving reports of the mass suffering in Ireland, which had been hit by the potato famine
What was the significance of the industrial/technological factors in the move to free trade?
with its advanced factory production, use of machinery and rapid transport systems, Britain was able to produce goods more quickly, cheaply and efficiently than its rivals - in the free market, Britain could be confident its products would dominate and free trade would allow easy access to profitable export markets
What was the significance of the demographic change which influenced the turn to free trade?
While free trade would mean British food producers faced competition, this would result in lower food prices for British woekres - which meant they had more disposable income to spend on goods and services which might boost the economy
What were the commercial factors that led to the adoption of free trade?
Restrictions see as a hinderance to Britain’s potential economic growth - tariffs made importing and exporting more difficult. , free trade would mean that countries like the US would be able to freely export their goods into Britain - thus the end of protectionism and tariffs would provide more commercial freedom and prosperity
What the reasons related to national finances that caused the move to free trade?
When Peel became PM in 1841 he argued that free trade and tariff reduction was the key to the success of the British economy. Free trade would stimulate industry, spark greater consumption and the government would earn more through taxation on goods and services
Give examples of evidence that supports Peel’s arguments on the effectiveness of free trade
Recovery from an inherited debt of 7.5 million to a surplus of 4 million between 1841 and 1844
What was the significance of the 1832 great reform act in terms of the adoption of free trade?
Changed constituencies and increased the franchise to articulate and organised middle class voters who were against protectionist measures and pressured for free trade
What was the problem that led to the corn laws?
During the napoleonic wars there was a naval blockade - made it difficult to import food. Meant British food producers could sell all their produce at a high price, without foreign competition - when the wars ended, there was an oversupply of corn, leading to a decrease in prices
What were the corn laws?
Tariffs implemented on imported corn to ensure that the price of British corn did not fall
What were the problems with the navigation Acts?
Custom duties imposed on the colonies led to protest and boycotts
Smuggling became common and punishments were resented
Strongest opposition came from manufacturers, merchants and plantation owners; articulate members of colonial socirty
By the early 19th century there were many exemptions and the acts were being bypassed
