Chapter 15 Trade, commerce and the economic impact of war Flashcards
Estimated costs of WW1
35bn pounds (13 times as much as the Boer War)
How much did Britain borrow from the US during WW1?
4bn pounds
When did Britain first leave the gold standard and significance?
in 1914, seen as measure of last resort
Which domestic industries suffered the most during the first World War? +example
traditional industries such as textiles and shipbuilding
e.g competition by the Japanese in textile production
When did Britain leave the gold standard again?
1931 as a result of a financial crisis
How much money did India contribute to the war?
146million pounds
Benefits for India from the war?
ended the reliance on British imports
(initially 2/3 of Indian imports came from Britain but this started to fall)
Benefits for Canada from the war?
emerged as a industrial power, increasingly looking to the US for investment and markets
Effect on Australia and New Zealand WW1
Hit hard as exporters of food, relied on the British market
Describe the two phases trade went through in the inter-war period?
1920’s - free trade system from before 1914, returning to the gold standard in 1925
After the Great Depression - return to Empire, “imperial preference”, sterling area
Define sterling area
countries although not all in the Empire that either pegged their currencies to the pound sterling, opr used the pound as their own currency
formalised under the Exchange Control Act of 1947
Significance of the sterling area?
gave access to the British markets for countries in the area, whilst ensuring profitable outlet of British overseas investment
soften the impact of the Great Depression
1913-1934
Imperial exports as a percentage of total British exports
37.2%-44%
Who prominently argued for a return to “imperial preference”
Lord Beaverbrook
Ottawa Conference 1932
introduced imperial preference in the way of
- 10% tax on all imports to Britain, Crown Colonies were exempt
- Britain and the Dominions gave each other preferential treatment
