Trade and Commerce - History Revision for The British Empire 1857 - 1967 AQA 2015 PDF

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History Revision for The British Empire 1857 - 1967 AQA 2015...

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Trade and Commerce 1857 - 1967

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1857 - 1890 Mercantilism - government regulation of a nation’s economy to enhance the position of the mother country at the expense of rivals Chartered Companies - association of investors who club together for trade Free Trade and Mercantilism - trade centred, profit motivated, products of their time, changing circumstances, favoured larger and established powers Agriculture - Canada, Australia, New Zealand (wool and cereal), South Africa, Tanganyika, Natal (cocoa, coffee, palm oil, rubber, diamonds) Mining - gold and diamonds, British industrial growth required minerals and metals Limited industrial development because of the dominance of British manufacturing but underdeveloped areas were encouraged to modernise (railways, canals) and British capital helped infrastructure (schools) Colonies obliged to - send most of their products to Britain, buy British good and use ships for imports and exports Three main areas - shipping, railways, canals and waterways Products of trade and commerce - agriculture, mining and industry 1914 - 1947 Economic effects of war - low employment, standards of living decrease, loans from countries, resources for the war, no monetary outcome, high debt, high tax, consumption decreases, growth in arms industries, low social welfare War extremely expensive - over $4bn borrowed from USA, sterling removed from gold standard due to low gold reserves (returned in 1925) Production for war prioritised over goods for exports Other countries took over markets - Japan in textiles India contributed £146m, Canada became industrial power Britain became more reliant on Empire for goods and services Britain did thrive during interwar period as most countries’ currency was fixed to Britain’s which gave them access to British markets and ensured profit for British overseas investment, softening the impact of WW1 Second World War more damaging than First World War - economy entered in a far weaker condition Britain lost many supplies when German U boats attacked Britain’s sea traffic Colonial Development and Welfare Act 1940 - wrote off some colonial debt, provided colonial grants and loans of up to £5m per year Colonial Development and Welfare Act 1945 - increased the aid available to colonies to £120m over 10 years, colonies had to make plan of how to spend it

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1890 - 1914 British investment abroad doubled from £2bn to £4bn, most towards Empire Britain believed that Empire made them wealthy - not as beneficial as imagined Disproportionate trade with colonies of Empire London was the financial capital of the world - most capital for imperial projects was raised here Gold Standard set up, made sterling the ‘global’ monetary system, further promoting Britain’s financial dominance If Britain could dominate the trade and commerce of countries in the form of investments and loans, it would have long term stability as a superpower Britain could loan money so they had something to hold against them - if Britain felt threatened, they could remove support financially Chamberlain (pro imperialist) - wanted to keep investments within the Empire, to make closer economic ties within the Empire, mutual agreements Britain began investing outside of Empire Far more British capital went to USA and India than anywhere else 1947 - 1967 Significant change in importance of Empire for British trade - Empire and Commonwealth very important to British trade until 1960’s 58% of overseas investments in shares and securities in Empire/Commonwealth Government investment in colonial economies to stimulate growth USA dominant economic power after WW2 - main supplier of goods to ROTW Prioritised British industrial production for export market rather than British market Aimed to develop productive and export capacities of the colonies - particularly in Africa (under-development of local resources offered opportunity for growth) Increase dollar reserves from colonial sales Colonial Development Corporation 1948 - develop self-sustaining agricultural, industry and trade By 1967, stronger trade with Europe and USA than Empire Colonial development schemes (Malaya rubber industry) - granted independence Tanganyika Groundnut Scheme 1946 - heavy investment in tractors, equipment and railways but terrain difficult to cultivate and turned into dustbowl abandoned after costing £49m - unsuccessful European Economic Community 1957 - Britain did not want to join as prioritised trade elsewhere, applied to join in 1960’s, vetoed by France in 1963 and 1967

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1967 - Sterling devaluation, ruined sterling, joined EEC...