Trade and Commerce 1914-47

Question 1

What was the total trade share with Empire decline c.1860-1929?

Answer 1

From 49% to 36%

Question 2

WWI impact on GB economy?

Answer 2

MASSIVE DECLINE-production in Br industries were stagnant- in textiles it was declining (1914= textiles made up 40% Br exports v 1938= 25%); sluggish growth in industries that were growing eg steel-British overseas investment didn’t recover from her sale of them to pay for the War- 1b down in 1930 from 1914-In 1935-9, import trade was 19% of national income vs 33% c. 1910-13-After Great Depression, Britain’s share of the world’s manufactured exports fell from 25% (1913) to 19% (1937)-Br cotton barely sold 1% of 1913 figures

Question 3

Change in economic attitudes during the interwar period?

Answer 3

During 20s Br had tried to create a free trade/no preference system which had operated before 1914 Post-Great Depression, Britain wanted to maintain as wide a geographical scope as possible; MORE ABOUT IMPERIAL PREFERENCE….

Question 4

What were the effects of the Wall Street Crash in Oct 1929?

Answer 4

Br world exports fell from 525m (1913) to 378m (1934)

Question 5

Stats demonstrating growing importance of empire in interwar period for Britain?

Answer 5

1920- 27% imports and 37% exports= colonies
1935-9 39% imports and 49% exports= colonies
British trade with the world declined as trade with the empire went up: world trade 1913- 525m vs 378m in 1934 THEREFORE RISE IN IMPERIAL TRADE DOES NOT CORRELATE WITH GENERAL TRADE RISE (IT IS SPECIFIC TO THE EMPIRE DEMONSTRATING GROWTH IN BRITAIN’S DEPENDENCE ON IMPERIAL INCOME)

Question 6

Effects of British economic decline on trading relationships?

Answer 6

Britain continued to trade more with underdeveloped countries due to inability to compete with other nations- in 1927-9, over 75% of exports went to non-industrial countries vs 58% in 1967-9

Question 7

Britain’s economic relation to dominions stats?

Answer 7

GB imports from dominions= 14.3% (1909-13) vs 24.5% (34-38)

Question 8

What was the Sterling Bloc?

Answer 8

After Britain forced off the gold standard in 1931, they established sterling bloc where members pegged the value of their currency to sterling and kept lots of their reserves foreign exchange in sterling

Question 9

What does Sterling Bloc mean for colonies?

Answer 9

Currencies enjoyed stable relationship - when LDN devalued, so did the colonies

Question 10

Was Sterling Bloc good?

Answer 10

Sterling kept at a low level to allow ‘cheap money’ - ie interests at 2%Allowed Britain to recover faster than USA, who also withdrew behind protectionism with Smoot-Hawley (1930) pactIt helped stave off the worst effects of the depression

Question 11

What/when was the Ottawa Conference?

Answer 11

1932Britain imposed a general tax on all imports but crown colonies were exemptsBritain and dominions gave other’s exports preferential treatment