Trade and Commerce Flashcards
1
Q
Explain the impact of WW1 in terms of debt
A
- Britain no longer in a position to invest significantly in its colonies and much of Britain’s capital investment overseas had been wiped out.
- The enormously expensive war caused the countries reserves to run dangerously low and the pound had to be removed from the Gold Standard.
- The war meant a huge rise in domestic borrowing in Britain: gov debt rose from £700m in 1914 to £7.5 billion in 1919.
2
Q
Explain the impact of WW1 in terms of markets and industrial competition
A
- Production for the war had been prioritised meaning Britain’s competitors were able to win over markets e.g. Japanese textile production meaning they lost revenue from exports.
- The war also affected the banks and financial institutions which generated profit from ending money overseas.
- However, in Argentina esp, British exporters staged a strong recovery.
- British investments overseas continued to earn a substantial income.
3
Q
Explain how WW1 led to growing costs of Empire
A
- Britain’s industry had been damaged which the income used to run and defend the
empire.
-> Growing nationalism had made the empire harder to police and control.
4
Q
Explain the benefits of victory in WW1 for British trade and commerce
A
- Extension of formal control in the Middle East gave Britain access to oil which was a
valuable commodity as well as useful for the merchant fleet. - Germany had been shattered by defeat and had been one of Britain’s main economic rivals leaving Britain free to have its dominant position in the world.
5
Q
Explain the economic impact of WW1 on India
A
- India contributed about £146m to the to the war effort.
-> India had become less dependent on Britain as a result of the war as the previous 2/3 of Indian imports from Britain in 1914 fell because of wartime disruption to trade and the growing strength of foreign competition. - Indian manufactures captured more of the
domestic market. - Britain paced high taxes on Indian imports after the war which gave Indian industry protection against competition leading to growth.
6
Q
Explain the economic impact of WW1 on Canada
A
- It emerged from the war as an industrial power meaning British manufactures lost their influence.
-> Canada increasingly looked to the USA for investment and markets. - It had the most industrialised economy of
any empire country, it sent the largest contingent of dominion manpower and it supplied the large fraction of the munitions Britain needed. - Britain also borrowed $1bn from Canada during the war.
7
Q
Explain the economic impact of WW1 on Australia and New Zealand
A
- both relied heavily upon the British market and were hit hard by the disruption of trade by the war.
- The dominions (not India and South African only in part) had paid for the forces they sent to the war effort.
- The impact on the colonies was bad for Britain because either they felt as though they no longer needed Britain or they relied on Britain too much to pay for their needs at a time where Britain itself was suffering.
8
Q
to what extent did the economic effects of WW1 damage the British Empire
A
- Britain came out of the war in huge amounts of debt – reducing investment.
- Britain lost overseas markets in its empire which allowed the colonies to become more independent.
- Growing opposition meant that the empire was more costly to control and Britain struggled to pay to maintain order.
- Less informal empire with loss of investment.
9
Q
to what extent were the economic effects of WW1 NOT damaging / actually strengthening to the British Empire
A
- Britain gained access to oil in the Middle East.
- Britain’s economic rivals e.g. the Germans were
shattered economically. - Britain managed to maintain most of its overseas trade.
- New territories in Africa gave access to raw materials.
10
Q
what were the 2 distinct phases in policy during the inter-war years (between ww1 and 2)
A
- 1920s -> Britain tries recreating an economic system which existed before 1914 (in which Empire had no special preference).
-> returned to gold standard in 1925 to stabilise international trade. - In the aftermath of Great Depression -> emphasis placed on importance of Empire for British commerce -> imports from Empire increased.
-> Exports did not do so well.
-> Again forced to abandon the gold standard in 1931 but trade with Empire in the sterling proved a great asset.
11
Q
What was the sterling area
A
- Most countries of Empire fixed value of currencies to the Sterling.
-> gave access to British markets for countries in the ‘Sterling Area’ while ensuring a profitable outlet for British overseas investment.
-> Britain was able to use the Empire to soften the impact of the damaging effects of collapse of economy.
12
Q
What was the value of Imperial trade and commerce for Britain
A
- Until 1930s, Empire remained important for cotton textile exports as it did for range of other industrial products.
- As world trade shrank, imperialist like Lord Beaverbrook argued for the return of idea of ‘imperial preference’.
- Ottawa Conference 1932.
- Dominions became an increasingly important market for British exports and a more significant supplier of imports.
- However -> India absorbed fever British exports -> key Indian and Asian markets like cotton textiles were won 1st by the Japanese and subsequently by emergent Indian cotton textile producers.
13
Q
What was the Ottawa Conference 1932
A
- British introduce a general 10% tax on all imports but Crown Colonies were exempted.
- Britain + Dominions gave each other’s exports preferential treatment in own markets.
-> reinforced role of Empire in supplying foodstuffs and raw materials to Britain.
14
Q
Explain stats showing the importance of Empire as a source of crucial imports
A
- British imports 1913-34
- total value of British imports from Empire: 1913 = £191m
-> 1934 = £257m - imperial imports as a % of total British imports: 1913 = 24.9%, 1934 = 35.3%.
- % of certain imports coming from the Empire to Britain.
- Cocoa imports: 1913 = 50.9%, 1934 = 90.7%.
- Raw Rubber imports: 1913 = 57.2%, 1934 = 79.7%.
15
Q
Explain the value of imperial trade + commerce for the Empire
A
- Dominions, esp Australia and New Zealand, experience serious economic problems in the inter-war period.
-> costs of imports from Britain outstripped income from exports which were largely foodstuffs and raw materials.
-> Imperial preference was especially important for those when the Great Depression in 1930s hit. - Burma and Malaya were hit hard.
- Malaya rely on reports of tin and rubber.
- Burma on exports of rice.
