Trade And Commerce (1947-67) Flashcards
What was the role of empire and commonwealth in trade up to the 1960s?
To maintain Britain’s international trading position:
. Provided essential imports of food and raw materials at a time when Britain’s reserves of foreign exchange were too limited to source imports from any other parts of the world (Britain had no choice but to trade with empire)
What is evidence to show the importance of the empire to Britain in trade up to 1950s?
Britain invested hugely in the empire:
. 1956 - around 58% of all overseas investment in the UK in a shares and securities were in empire companies and governments
. Showed their loyalty to the traditional reliance of the empire in not joining the EEC in 1957
At what point did other parts of the world become more important to Britain in trade?
After Britain successfully recovered to a good extent economically from the war, around 160s. This is because Britain rely on the empire during times of economic turmoil, when Britain are recovering from the WW2
How did British imports from commonwealth and Western Europe shift from 1948-65?
1948: 1965:
. Commonwealth - 45%. . 30%
. Western Europe - 20.5%. . 30.6%
How did British exports to commonwealth and Western Europe shift from 1948-65?
1948: 1965:
. Commonwealth - 46%. . 28%
. Western Europe - 25%. . 32.5%
Did the European economy recover from WW2 quickly and why?
More quickly than expected, largely due to the US Marshall aid (more reliance on USA)
- political climate at the time favoured private enterprise
- continued support offered by USA
- advances in science and technology
- changes in industrial relations
What were the consequences of the European economy recovering well from WW2?
. Growth relates high
. Living standards, mostly in Western Europe, were rising rapidly
How did Britain try to rival the EEC in 1957?
Had a rival trading block of European non-EEC members in the EFTA (European free trade association)
How did Britain have to make a big decision with the EEC?
As the EEC flourished, Britain became torn on a future based on a commonwealth of global trade links or one where trade and economic relations with Europe would dominate future economic policy
When and why did Britain decide to try and join the EEC?
Applied for membership in 1963 and again in 1967 but rejected. Eventually joined in 1973
Tried to join as exports to Europe outshone those to the empire in the early 1960s (trade becoming dominated by Europe)
Why were Britain rejected from the EEC in 1963 and 1967?
. Britain insisted on special concessions being allowed for British commerce with the Commonwealth
. De Gaulle (French) was particularly annoyed that Britain believed they could just join the EEC seemingly as a last resort as the commonwealth didn’t seem as favourable to trade with anymore
How was Britain’s post war reconstruction centred around USA?
. Relied on economic aid e.g marshall plan
. Britain needed to earn dollars to pay for imports from USA that were the main supplier of vitally needed goods coming out of WW2
. To get these dollars, Britain had to build up foreign exchange reserves
How did Britain try to build up their foreign exchange reserves for post war reconstruction?
. Continued rationing at home to cut the cost of food imports
. Prioritised British industrial production for exporting rather than the domestic market
. Tried to develop productive and export capacities of the colonies, especially in Africa where the under-development of local resources offered huge changes for growth
- apart from helping to increase dollar reserves, this also ensured a steady supply of goods to Britain from within the sterling area, saving precious reserves of dollars and scarce foreign currencies
How did Britain develop the colonies for post-war reconstruction?
. 1940 colonial development and welfare acts helped to expand agricultural production and promote new technology in the colonies
. 1948 colonial development corporation set up to co-ordinate major projects and develop self-sustaining agriculture, industry and trade
- renamed commonwealth development corporation in 1963 (CDC)
It’s interesting to see that Britain are still primarily using the colonies for its own economic benefit
