economy 1873-1914 Flashcards
(36 cards)
how did Britain’s early start cause problems in British industry?
were there any advantages?
causes a long-term disadvantage…
-other countries could copy and innovate
-techniques and processes become outdated and the inital advantage is lost.
-eg British cotton industry needed redesigning, while in the USA, the whole production process was put in place in one go.
-new industries such as electricity, chemicals and cars became better established in the USA and Germany
advantages…
- Britainn continued to dominate in the shipbuilding industry
-Britain did develop chocolate and soap production but these didn’t contribute significant manufacturing innovations to benefit the economy
how did declining demand abroad cause problems in British industry?
-other countries began to develop their own raw materials (eg coal), and by 1886 they were no longer reliant on Britain meaning Britain was no longer the ‘workshop of the world’
-reduced British exports
how did free trade cause problems in British industry?
put Britain at a disadvantage after 1800 as other countries imposed tariffs on British goods, meaning that they didn’t sell as were more expensive in comparison to goods from other countries
how did low wages cause problems in British industry?
-suppressed British demand for manufactured goods, as little disposable income to stimulate economy and generate demand.
-British manufacturers concentrated goods aimed a the aristocracy rather than targeting the mass market with cheaper goods.
-This left Britain reliant on shrinking export markets.
how did supply-side factors cause problems in British industry?
Britain was at a disadvantage compared with other economies.
In 1910, the USA textile and tinplate industry was able to produce the same amount as Britain with only 25% of the workforce
how did small run family firms cause problems in British industry?
they were focused on profits not long-term investment
During the ‘depression’ they preserved profits by cutting wages rather than investing on the economy.
how could the impact of Britian’s early start been reduced?
there was a reluctance to overcome as it would have been very expensive, but was preventable by innovating and creating more efficient technology.
how could the impact of declining demand abroad been reduced?
Britain could have imposed tariffs on foreign goods.
how could the impact of low wages been reduced?
raised wages or made cheap goods for the poor mass market
how could the negative impact of small family run firms on the economy been reduced?
they could have reinvested, turned to mass production, or developed better management techniques such as introducing economies of scale
what issues did imported cheap cereal cause in the British economy?
thousands of agricultural workers were laid off
farmers went bankrupt
the amount of land used for growing cereal crops fell from 9.6 million acres in 1872 to 6.5 million acres in 1913
what was the land that used to be used for cereal used for and why was this beneficial?
much of the land was turned towards pasture which improved Britains supply of meat and dairy products. this meant that British farmers were better protected from foreign imports as these products could not be imported efficiently and people preferred to buy fresh.
what did loss of income within the agriculture industry lead to? x4
lack of maintenance on farmland
stagnant wages for workers
shrinking workforce
fields being left to become rough pasture
what technology was developed in the farming industry to help save labour costs?
self binding reaper
plough that could work 2 farrows at the same time
new scientific developments to breeding livestock
was there any recovery to the farming industry after 1900?
agricultural output raised by 5% between 1900-1914 and prices rose slightly.
government supported farmers moving to market garden farming and dairy farming
banned live cattle imports
but British farming would never reach its previous highs
how were staple industries crucial the Britian’s economy?
iron, coal, textiles and engineering were responsible for 50% of all British output and employed 25% of the workforce
what increased the rate of innovative steel production methods being put into place in Britain?
naval race
what new industries were developed during this time period?
motor cars- 132,000 cars in Britian in 1914, Rolls Royce, not mass produced though like USA
Bicycle industry, valuable export
electrical industry- steam turbines, could be produced on a large scale
soap
chocolate
in what industry were huge profits being made?
invisible exports such as shipping, trading and financial services.
how much money had Britain invested abroad by 1913 and what were the benefits of this?
£4 billion
British investors found great opportunities and profit margins in the new and emerging economies of the world, so this is where they invested their capital
how did the amount of Britain’s investment abroad compare with other countries?
France Belgium Germany Holland and the USA combined only had £5.5 billion in foreign investment
How much did the merchant navy industry contribute to the level of invisible exports?
in 1900, 45% of all cargoes entering French ports, and 55% of all cargoes entering USA were British ships.
generated £100 million/year from 1911-1913
2/3 of invisible exports
although USAs ships were quicker and required fewer sailors Britain still dominated this industry
which bank gave insurance across the world, another invisible industry?
Lloyds
How did foreign investment help the economy? To what extent did it?
twice as much capital was being invested in abroad than in Britain.
This helped the invisible balance of trade but didn’t help technological innovation in Britain
