Trade and Commerce Flashcards
What system was used in the 18th century ?
- In the 18th century, Trade and Commerce had been strictly regulated in a system of mercantilism
What was the system of mercantilism ?
- Trade operated through heavy regulation
Economic policy of using trade barriers and trade restrictions to protect internal economic prosperity - systems of regulations governing trade ith colonies where obliged to send their produce to Britain
What system was used in the 19th century ?
- Free Trade dominated Trade and Commerce
What was Free Trade ?
- Free trade was ‘ free ‘ from government interverence
- Enforce free trade agreements with countries
Benefits of Free Trade ?
- coming of free trade saw imperial trade and investment grow enormously
- creating an ‘ industrial ; empire whereby colonies supplied both foodstuffs and the raw materials which British industry converted into finished goods for exports
- In the third quarter of the 19th century, around 20% of Britain’s imports came from its colonies, while the Empire provided a third of British exports
How did Free trade come about ?
- influence of new theories of free trade - as advocated in Adam Smith’s influential book, The Wealth of Nations. In this he argued that wealth was indefinitely expandable and freed om from commercial restrictions was the way to maximise prosperity
Infrastructure of trade - ( all details )
- shipping
- railways
- Canals/ Rivers
What were clipper ships and their use ?
- clipper ships were smaller, speedy boats
- clipper ships used to transport spices, luxuries, mail and people
What were steam ships and their use ?
- were bigger, stronger ships
- used to transfer the world with bulkier produce
How were steam ships developed ?
- development of the compound steam engine in the 1850s ( which consumed less coal ) which enabled steam ships to trade economically with distant possessions
- Massive Development in the 1850s :companies cut the time of transport from Britain to West Africa to three weeks and increased cargo capacity
Impact of railways ?
provided vital links between rural areas of production and the sea.
E.g. - Enables Australia to export wheat and wool
- allowed South Africa to expand commercial awareness and territories Into the interior,
- In India they linked the areas of the north with the mills to reach ports for exports
How did the British provide the infrastructure for railways ?
- The British provided the investment, the engineers, and the rolling stock and governments
Impact of railways for Britain’s economic development ?
- Use of railways was important for the Empire as it was key for economic development.
- ensured British control as colonies were dependent on the British
- increases capacity to move stuff around the world. Increased capacity makes more money
- Allows more products tp be exported
Uses for canals ?
- important means of transport for trading products
- facilitates even more trade
- often the focus of explorers’ quests to discover what lay behind there accessible coastal areas.
How were canals developed/ improved to be infrastructure ?
- New canals developed on a huge scale after 1857 to improve access between ports of India
- In Canada, after 1867, canals were deepened around the Great Lakes to overcome height differences between major links
