Economics interwar

Question 1

Cost of world war one

Answer 1

£35,000 million - 13 times as much as the second boer war

Question 2

How much was borrowed from America

Answer 2

$4billion

Question 3

India contribution

Answer 3

• £146 million
• due to losses economically high taxation was placed on India imports (fueled the nationlist movement) from 11% in 1917 to 25% in 1931
• Britsh manufactures lost ground here and in Canada
• demands for revenue grew 30% from 1916-19 and price of imported goods rose 140%

Question 4

Canada

Answer 4

increasingly traded with USA

Made first trading agreement without consulting the British - The Herbert fisheries treaty 1929 was made without consulting the British. Between USA and Canada.

Moreover the Treaty of Locarno in 1925 demonstrated changed relationship with dominions as didn’t want to be a part of it representing the dominions as taking an active decision to be diplomatically independent from Britain.

Question 5

Two phases of trade relations with emprie

Answer 5

1) in the 1920s Britain tried to recreate the economic system which had existed before 1914 in which empire had no preference. Therefore returned to gold standard in 1925

2) Aftermath of Great Depression a much greater emphasis based on empire. Forced to abandon gold standard in 1931 but instead created the Sterling block.

Question 6

Did the volume of imperial trade increase?

Answer 6

No however it was promoted more and was a greater percentage of British imports and exports but its value was not bigger.

Question 7

Ottowa Conferance

Answer 7

In 1931
- The British introduced a 10% tax on all imports but crown colonies were exempt.
- Britain and the dominions gave each other’s exports preferential treatment.

Reinforced the important role of Empire in providing foodstuff and raw material to Britain.

Question 8

Importance of empire as a market

Answer 8

• 1913 locomotive exports were 58.6% which increased to 65.3% in 1934
• Motor vehicle exports increased between 1913 and 1934 by 4% significant.

However,
decreased in electrical engineering exports.

Question 9

Imperial Imports as a percent of British imports 1913-1934

Answer 9

increased from 24.9% to 35.3%
(value of Imperial imports increased)

Question 10

Imperial Exports as a percent of British Exports 1913-1934

Answer 10

increased from 37.2% to 44%
(however not more valuable than exports to the rest of the world which was more valuable by £212 million and value of Imperial exports had decreased from £195m in 1913 to only £166 million in 1934)

Question 11

Counter argument

Answer 11

Still no 50% in imports and export so although relationship/ dependency increased still not a majority of British trade.

Question 12

region percentage of Imports and Exports

Answer 12

Dominions in both exports and imports made up biggest percentage of imperial imports and exports significantly ie 26% of 44% of exports) - important to dominions as suffered due to fact that the cost of their imports from Britain outstripped the income from exports.

Question 13

imports and exports in general in Britain

Answer 13

Overall they decreased. Increased proportionality with empire.