Trade And Commerce WW1

Question 1

Cost of WW1

Answer 1

From 1916 it was costing Britain £7m a day

Question 2

How did WW1 impact economically on Britain?

Answer 2

• cost the lives of almost 1m Britons
• much of overseas capital investment wiped out
• removal of gold standard gold reserves fell low

Question 3

WW1 impact of exports

Answer 3

Made exports cheaper as value decreases

Question 4

Impact of WW1 on food

Answer 4

Rationing- royal family even join in

1 in 4 of food import ships sunk by German U boats

Question 5

Why was Britain outcompeted overseas?

Answer 5

Production for war prioritised over exports- Japanese’s won markets in textiles

Banks and financial institutions that usually made profits form lending money overseas outcompeted

=Great Depression

Question 6

Economic impact of WW1 on empire: how much did India contribute to war effort

Answer 6

£146m to war effort

Question 7

Economic impact of WW1 on empire: how did Indian manufactures capture domestic market?

Answer 7

In 1914 2/3 of India’s imports are British this fell due to trade disruption

Question 8

Economic impact of WW1 on empire: how was Indian industry protected against competition after war?

Answer 8

Britain place high taxes on Indian imports- 11% 1917 25% in 1931

Question 9

Economic impact of WW1 on empire: Canada

Answer 9

Emerged as an industrial power- British manufacturers lost ground
-Canada began looking to USA for investment in interwar period

Question 10

Economic impact of WW1 on empire: Aus and NZ

Answer 10

Hit hard by trade distribution
Australia’s debts viewed by Britain as Australian mismanagement this caused resentment and the rise of Labour Party in Aus

Question 11

Trade and commerce between the wars: what did Britain try to recreate in the 20s

Answer 11

1914 system of gold standard which is reintroduced in 1925 to stabilise international trade

Question 12

Colonial development act

Answer 12

1929

Treasury funds support colonial development

Question 13

What happened after the Great Depression

Answer 13

Much greater importance on trade with the empire- imports from empire increased

Question 14

When was gold standard abandoned again

Answer 14

1931

Question 15

How did Britain use empire to soften the blow?

Answer 15

Most countries in empire fixed value of currency to sterling to have close ties and access to British market

Sterling area is profitable for British overseas investment

Question 16

Change in cotton exports

Answer 16

Japanese comp
1913- 3% import from empire
1934- 17.1%

Question 17

What did lord Beaverbrook want

Answer 17

Return of imperial preference

Dominions opposed as wanted to protect growing industry

Question 18

What was the compromise at the Ottawa conference

Answer 18

1932
British introduced 10% tax on all imports except crown colonies

Britain and dominions gave each others exports preferential treatment in own markets

Question 19

The effect of Ottawa compromise

Answer 19

Reinforced importance of empire in supplying foodstuff

Question 20

Imperial imports as a percentage of total British imports

Answer 20

1913- 24.9%

1934- 35.3%

Question 21

Economic impact on the empire: Burma and Malaya

Answer 21

Hit hard- Malaya relied on tin and rubber exports

Burma relied on rice exports