Trade And Commerce Inter-war Period

Question 1

What were the two phases that Britain went through during the inter-war period?

Answer 1

Phase 1: in 1920s (post WW1), Britain tried to return to free trade
Phase 2: after Great Depression (1929), importance of Empire in trade and commerce was highlighted

Question 2

How did Britain try to return to free trade following WW1 and why?

Answer 2

Returned to gold standard in 1925, to stabilise international trade
- returning to free trade would have brought in more imports and made more from exports, allowing Britain to recover from the war
- getting back on the gold standard was a sign of supposed economic stability which would create a strong appearance for Britain coming out of WW1

Question 3

What was an exception in trade in the 1920s where the colonies were considered a priority in trade?

Answer 3

1929 colonial development act - provided Treasury funds to support colonial development projects

Clearly, despite Britain trying to return to free trade and re-stating a position of overall economic dominance, Britain wasn’t completely turned away from the idea of imperial preference

Question 4

Which event heavily impacted the Empire’s view on how British trade should be carried out?

Answer 4

The Great Depression

Question 5

How did the Great Depression shift economic preferences for the empire?

Answer 5

There was an emphasis now on the importance of Britain for commerce
- imports from the empire increased

Question 6

When did Britain abandon the gold standard again after the Great Depression and why?

Answer 6

1931 -

However, trade with the empire in Sterling was a great asset and almost stabilised what would be the economic instability that comes with abandoning the gold standard

Question 7

When do Britain seem to rely on the empire for trade and commerce?

Answer 7

In times of economic turmoil e.g WW1 and Great Depression

Question 8

How did Canada feel about returning to imperial preference?

Answer 8

. They were slightly concerned as they wanted more independence in industry, as they had gotten a strong trading relationship with USA due to its proximity to it.
. Imperial preference would reduce dependence on their non-empire economies and this may limit Canadian autonomy in or pursuing other trade agreements outside of the empire

Question 9

When did the Dominions come together to discuss imperial preference after WW1?

Answer 9

1932 Ottawa Conference

Question 10

How was WW1 a time of economic turmoil for Britain?

Answer 10

. Gold standard suspended
. Public expenditure rose
. Lost out on international markets of industrialisation
. USA economic debt