What part did economic factors play in the development of the British Empire: 1857-1890

Question 1

Mercantilism (and examples)

Answer 1

Colonies would sell products to Britain and buy manufactured goods:

• 20% of imports and ⅓ exports came from or went to colonies from 1857-1890
• 40% of British investment went to imperial territories

Question 2

Free trade (and examples)

Answer 2

Abandoned protectionism:

• Used navy to defend due to shipping being main way to raise profits
• Clippers - low volume, high profit goods such as tea with a 20 year life span
• Compound steam engine - trade to Africa in just 3 weeks

Question 3

Maximisation of profits

Answer 3

Infrastructure developed around Britain’s trade:

• Canals and Rivers - Purchase Suez Canal in 1875 and canals deepened around St Lawrence in 1867
• Agriculture - Plantations in India increased, tea £24,000 in 1854 - £2,430,000 in 1876
• Mining - Gold deposits in Witwatersrand in 1886 led to 30,000 skilled laborers from Britain to the Transvaal, Diamond Syndicate in 1890

Question 4

Chartered Companies (and examples)

Answer 4

Have the purpose to generate profit for shareholders in Britain but often led to exploitation of local people and environments:

-Royal Niger Company (1886) was permitted trade in the lands along the Niger and Benue rivers but also gave permission to expand northwards and act as government of the Niger region

-Imperial British East Africa Company (1888)

-British South Africa Company (1888)