Trade and Commerce

Question 1

In the eighteenth century what was the system of trade and commerce ?

Answer 1

Trade and commerce of the Empire had been strictly regulated in a system of ‘mercantilism’ whereby colonies had been obliged to send their produce to Britain.

Question 2

what was a system of mercantilism ?

Answer 2

a system of regulations governing trade. Colonies were obliged to send most of their produce to British , buy British manufactured goods and use British ships for both imports and exports.

Question 3

What happened in the first half of the nineteenth century to the system of trade and commerce

Answer 3

this highly regulated protectionist system had been dismantled

Question 4

what was a system of protectionist ?

Answer 4

using tariffs - particularly duties on imported goods to regulate trade.

Question 5

how did the system of protectionist come about ?

Answer 5

Influence of new theories of free trade, as advocated in Adam Smith’s influent; book, the Wealth of Nations.He argued wealth was indefinitely expandable and freedom from commercial restrictions.

Question 6

Why were Britain able to indulge into the theory of free trade ?

Answer 6

Due to its position as the worlds foremost trading nation, Britain could take advantage of free trade.

Question 7

Evidence of British benefiting fro free trade ? Under free trade Imperial investment and trade agreements

Answer 7

Under free trade Imperial Investment and trade agreements.
In the 3rd quarter of the 19th century , 20% of Britains imports came from its colonies.Whilst the Empire provided a market for a 3rd of British exports.
London became the financial capital and Sterling the international currency of trade.