britain 2 Flashcards
(19 cards)
Why was Britain seen to be in such a good position after 1900?
It was the greatest trading nation, owned half the world’s shipping, had an empire covering over a third of the globe, and had a population of 43 million.
What industry did most people work in in 1900 Britain?
Industry – especially mining, shipbuilding, and engineering.
What were the staple industries?
Textiles, steel, coal, and shipbuilding.
Why were the staple industries strong by 1913?
60% of industry came from them; Britain industrialised first, iron and steel output was rising, and they remained profitable between 1906–1914.
What new industries had emerged by the early 20th century?
Electronic engineering, chemicals, and motor vehicle production.
Why did farming have to change by 1901?
Due to mechanisation and food imports from abroad; employment in agriculture fell below 1.4 million.
What are invisible exports?
Services like banking, investment, and insurance.
Why were invisible exports important to Britain?
Britain led globally in these areas; 32% of national wealth came from overseas investments and they brought in massive profits between 1906–1914.
What were the main problems in the British economy in the early 20th century?
The Great Victorian Recession, lack of investment and research, stagnation in new industries, low wages, poor education/training, free trade vulnerability, and agricultural decline.
What was the Great Victorian Recession?
A period where Britain was overtaken by Germany and the USA in iron and steel output, with imports growing faster than exports.
Why was the Great Victorian Recession concerning?
It created a trade gap and showed that Britain was falling behind competitors.
Why was lack of research and investment a concern?
Britain invested little in innovation compared to the USA. For example, only 8% of coal was mechanically cut in Britain (1914), vs. 25% in the USA (1900).
Why was there a lack of progress in new industries?
The German chemical industry was double Britain’s by 1913. Germany and the USA supported new industries, while Britain stuck with laissez-faire policies.
What were the concerns about Britain being a low-wage economy?
British workers couldn’t afford the goods they made; only the middle and upper classes could. In contrast, American workers had higher wages and stronger domestic buying power.
Who supported the concern about low wages in Britain?
Economist J.A. Hobson.
What was the issue with Britain’s free trade policy?
It left domestic markets unprotected from foreign competition and gave Britain little leverage to reduce other countries’ tariffs on British goods.
What were the shortcomings in British education and training?
Workers lacked sufficient skills; there weren’t enough trained inventors, designers, and technicians. Germany produced about 1000 engineers per year; Britain only about 400.
What were the main problems in British agriculture?
Cheap foreign imports (especially from the USA) undercut British farmers. Before WW1, only 25% of wheat sold in Britain came from British farms.
What were the positive aspects of the British economy between 1906–1914?
Staple industries remained profitable, world trade was growing, invisible exports were highly lucrative, and cheaper food improved real wages.
