Trade and Commerce 1914-47

Question 1

What were the main economic impacts of WW1 on Britain? (brief)

Answer 1

• Commercial rivals( eg japan) seized british markets
• Staple industries damaged severely (coal, iron, steel, ship building) once these markets were lost they were difficult to reestablish
• US took over shipping
• Huge debt to the US - US had loaned Britain money
• Gold standard decision in 1925 backfired - British goods too expensive
• Balance of economic power shifted from britain/europe to the US
• WW1 accelerated economic decline (but not sole cause

Question 2

What was the cost of war?

Answer 2

£35,000 million

Question 3

Consequences of WW1 on export industries?

Answer 3

• Production for war prioritised over making goods for export to traditional overseas markets and thus Britain’s competitors able to win markets traditionally dominated by British exports. Not all these overseas markets won back after First World War.
• Textiles, shipbuilding, coal, iron and steel
  🡪 created income to pay for running and defending Empire though experienced great difficulties between wars as they faced new overseas competition, i.e. Japanese textiles.

Question 4

Economic Impact of WW1 on India?

Answer 4

• India had contributed £146 million to war effort
• Imports from Britain began to fall after 1914, which at the time was 2/3 of total import, because of growing strength of foreign competitors. Indian manufacturers began to develop own market and also maintained British control.
  - Rose from 11% in 1917 to 25%
  in 1931.

Question 5

Economic Impact of WW1 on Canada?

Answer 5

• Benefitted from war, emerging as industrial power as British manufacturers lost ground.
• Began trading more with America.

Question 6

Economic Impact of WW1 on Australia and NZ?

Answer 6

Exporters of food and relied heavily on British markets
🡪 hit hard by disruption of trade caused by war.

Question 7

What happened to British Policy towards imperial trade in the inter-war period?

Answer 7

Policy towards imperial trade went though 2 distinct phases in inter-war period :
- After 1920s Economic systems existing before 1914
- Post Great Depression emphasis on Empire

Question 8

British policy towards Imperial Trade in 1920s?:

Answer 8

• Britain tried to recreate the economic system which had existed before 1914 (in which the Empire had no special preference)
• Thus Britain returned to the gold standard in 1925 in order to stabilise international l trade
• Colonial Development Act still provided treasury funds to support colonial development projects therefore some attention to Empire

Question 9

British Policy towards Imperial Trade following Great Depression?

Answer 9

• In the aftermath of the Great Depression (29) a much greater emphasis was placed on the importance of the Empire (although exports to it did not do so well)
• Forced to abandon the gold standard in 1931 but trade with Empire in sterling proved valuable

Question 10

How did Britain use Empire to soften the impacts of the Great depression?

Answer 10

• most countries of Empire fixed value of currency to sterling and some kept national reserves in sterling, reflecting close ties with Britain
• Gave access to British market for countries in Sterling Area, ensuring profit outlet for British overseas investment at time when most International opportunities closed down.

Question 11

What was the impact of Imperial Preference on Exports to Empire/Imports from?

Answer 11

• Exports to Empire and imports from Empire increased in the 1930s as idea of Imperial Preference under Lord Beaverbrook became incredibly popular due to growing world trade issues due to Great Depression.
• More industrial good began to be exported like locomotives, railway carriages and motor vehicles

Question 12

Imperial exports in 1913 vs 1934?

Answer 12

Imperial exports as a total of British exports went from 37% in 1913 to 44% in 1934

Question 13

Why was the Ottawa Conference of 1932 important for Imperial trade?

Answer 13

• Britain introduced a general 10% tax on all imports but the Crown colonies were exempt
• Britain and the Dominions gave each other’s exports preferential treatment in own markets

Question 14

British exports and Imports to and from India?

Answer 14

Fell as they began to rely more on Japanese markets
- British exports to India and Burma went from around 12% in 1909-13 to 8% in 1934-38
- British imports from India and Burma began to decline slowly though they were never high

Question 15

Dominions/ reliance on imperial preference?

Answer 15

• Dominions relied heavily on imperial preference as Australia and New Zealand’s economic crises were becoming significant
• Exports to Dominions went from around 18% in 1909-13 to around 26% in 1934-38
  Imports from Dominions went from 14% in 1909-13 to around 25% in 1934-38

Question 16

(Economic impact of WW2) : Impacts on shipping?

Answer 16

German U boat attacks on British sea traffic devastated British trade. British lost overall 11.7 million tons of shipping or 54% of country’s merchant fleet strength

Question 17

Impact on supply of raw materials?

Answer 17

• Loss of Singapore in South East Asia and other major colonies disrupted trade and cut off vital supplies of raw materials such as rubber from Malaya

Question 18

Impact of weapon production?

Answer 18

Industrial production of producing weapons of war meant less produced for export. Britain tried reducing imports by increasing home production but it was in trade deficit

Question 19

What/ why was the Lend-Lease programme?

Answer 19

1/3 of Britain’s foregin assets were sold off and Britain had to rely on Lend-Lease program, where USA supplied Britain

Question 20

British reliance on Empire for imports

Answer 20

• Britain had to rely on Empire for imports.
• considerable investment by colonial governments, for example in Africa (Tanganyika Groundnut scheme), to help increase supply of foodstuffs and raw materials. Where colonies weren’t economically beneficial (India, Burma, Palestine) Britain let them go.

Question 21

Colonial Development and Welfare Act of 1940

Answer 21

• wrote off some colonial debts, provided colonial grants or loans of up ot £5 million per year
  (Furhter act in 1945 increased aid available to colonies to £120 million over 10 years and required ten-year development plans to allocate funds