Trade

Question 1

What was protectionism?

Answer 1

A policy of ‘protecting’ trade of a country or empire by imposing tarrifs on foreign goods

Question 2

What was mercantilism?

Answer 2

An economic policy of maximisimg exports to achieve a positive trade balance, using protectionism

Question 3

What is free trade?

Answer 3

A policy of removing all tarrifs on imports and exports; having open compeition

Question 4

Why was British debt growing between 1763 and 1821?

Answer 4

War - first the 7 years war, resulting in government debt being 157% of GDP in 1763 - rose to 260% in 1821 as Britain struggled to pay for the American war of independence, the French revolutionary wars and the napoleonic wars

Question 5

Why did the standardisation of trade help Britain in the mid-19th century?

Answer 5

helped many British merchants as they could produce manufactured goods that were far cheaper than those of their rivals. by the mid 19th-century, British trade dominance extended for beyond Britain’s directly managed colonies, into China and South America.

Question 6

What did the colonies come to be seen as by the great powers and what did this lead to Britain doing?

Answer 6

Colonies became seen as inherently valuable by ideological imperialists in Europe and Britain, leading to a frenzied period of colonisation on the weakest of pretexts, characterised by the scramble for Africa. Britain began to appropriate territory simply to prevent other powers from doing so.

Question 7

Outline why the slave trade was important to Britain

Answer 7

Allowed for trading within the American colonies - allowed for sugar and tobacco to be shipped to Britain - a large part of society.
Up to 1800s - was seen as critical to British economic power - sugar was the largest import

Question 8

Outline the triangle trade

Answer 8

Shows Britain’s domination of the slave trade
Slaver’s vessels sailed from England - traded goods such as textiles, alcohol and firearms for slaves at West African ports - they were then taken to the Caribbean where they were sold. In payment the slavers took raw materials such as sugar and cotton then took this back to Britain to sell.

Question 9

Outline the influence of the ruling class on the slave trade

Answer 9

The government placed taxes and tariffs on the slave trade and used this money to finance the Royal Navy and Wars.
1766 - estimated at least 40 members of parliament had financial interests in the slave trade
The church of England owned a slave plantation in Barbados
The capital needed to buy a slave ship was provided by English bankers, thus many of the English gentry indirectly invested in the slave trade this was and relied on the profits for the payment of loans

Question 10

Which were the main slaving ports of Britain - add stats

Answer 10

Bristol, Liverpool and Glasgow - by the 1790s, 120-130 slave ships a year sailed from liverpool, making it the main port for the slave trade in the world.

Question 11

Why was there never a shortage of demand for new slaves?

Answer 11

They were treated appallingly - many did not survive and the birth rate was low

Question 12

Outline the humanitarian/pubic pressure factors that led to the abolition of the slave trade

Answer 12

Rise of evangelical Christianity - Methodists & Quakers opposed slavery
Public campaigns - e.g. entrepreneur Wedgewood designed protest plates
Abolitionist campaigning in the country - NAtional petition campaign of 1788 resulted in over 500 petitions being sent to parliament
Increasing slave resistance

Question 13

Outline the political and international factors in the abolition of the slave trade

Answer 13

when French reintroduced slavery, British favoured abolition to destabilise the French (When foreign slave trade Abolition Bill was introduced in 1806, it was presented as an anti-French measure to the house of commons)
More support for abolition in the house of Commons - new liberal Irish MPs supported abolition and Lord Grenville (PM in 1807) threw all his weight behind Slave Trade abolition bill in House of Lords

Question 14

When was the slave trade abolished in Britain?

Answer 14

1807

Question 15

Outline the economic factors which led to the abolition of the slave trade

Answer 15

World over-supply of sugar - could be sourced without slavery at lower cost from other colonies
Plantation owners suffered some decline in profits - but was still a profitable trade - 40% Bristol’s income came from the trade
Financial uncertainty - threat of slave rebellions, disease, losses to foreign privateers during wars
1 in 10 ships during 18th century lost its owner profit - in 1778 merchants in Liverpool lost £700,000

Question 16

What were the political barriers to the abolition of the slave trade?

Answer 16

The government benefited from the slave trade through taxes and tariffs
It created a large pool of skilled sailors who could be recruited into the Royal Navy during the frequent manpower shortages

Question 17

Which was the most important factors in the abolition of the slave trade?

Answer 17

Political and international factors

Question 18

When was slavery abolished in most British colonies? What was the name of the act?

Answer 18

slavery abolition act - 1833

Question 19

What was the situation regarding the abolition of the slave trade in 1802?

Answer 19

It now favoured the abolitionists - Napoleon had seized power in France and attempted to restore slavery - the ex slaves resisted and fought against the French

Question 20

What was the significance of the ex-slaves resisting Napoleon in 1802?

Answer 20

This caused public support for the abolitionists and they were now aligned with the French

Question 21

What happened in 1789 regarding the French slaves?

Answer 21

French revolution followed by slave rebellion on Saint-Domingue - French responded by freeing their slaves in the colony - Britain reacted by invading the colony - emancipation seen as ‘pro-French’ so politicians and public turned against it

Question 22

What were the immediate affects of the slavery abolition act of 1833?

Answer 22

Freed more than 800,000 enslaved Africans in the Caribbean, South Africa and Canada

Question 23

What were the effects of the abolition of the slave trade 1807 on British involvement in slavery?

Answer 23

Millions of Africans were exported as slaves after 1808, many of them carried in ships financed, built or equipped in Britain. British investment continued in places where slavery remained legal, e.g. Cuba and Brazil
1840s - 20% British sugar imports came from Cuba
Industrial midlands and LAncashire imported vast quantities of raw cotton from the USA and Brazil, where it was grown by slaves.

Question 24

What were the effects of the abolition of the slave trade 1807 on British involvement in anti-slavery

Answer 24

From 1815-1865, British Royal Navy undertook anti-slavery patrols off the West African coast, seizing hundreds of vessels
Britain forced to pay compensation for seized ships.
Limited impact: By 1840s, only 10% British ships dedicated to stopping slave trade and by 1870 only 22% of the ships were intercepted

Question 25

What were the wider commercial effects of the abolition of the slave trade 1807?

Answer 25

Some decline of ports of Bristol, Glasgow and Liverpool British industries continued to benefit from cheap, slave produced goods e.g. sugar from Cuba, coffee from Brazil and raw cotton from US Abolition strengthed commercial ties with North America and gave boost to free trade

Question 26

What were the negative effects of the abolition of the slave trade 1807 on plantations in the Caribbean?

Answer 26

When faced with a labour shortage, increased use of women and children - cheap indentured workers from India and CHina began to replace African slaves. as the cost of labour rose, the profitability of the Caribbean plantations reduced - hard to compete with slave run producers in the US, Cuba and South America

Question 27

What were the positive effects of the abolition of the slave trade 1807 on plantations in the Caribbean?

Answer 27

Triangle trade declined and was no longer so central to British commerce Planters invested in new machinery and cared for slaves better in order to retain a healthy work force

Question 28

What were the effects of the abolition of the slave trade 1807 on British outlook on trade?

Answer 28

Britain turned its back on mercantilism and increasingly favoured free trade - The Act meant Britain merchants had to find new ways of making money and therefore sought out new markets and new trade routes, leading to the expansion of British trade outside of the Empire and into the Americas

Question 29

Why did mercantilism remain the main policy in Britain for so long?

Answer 29

thought it was the best way of protecting British industry and promoting growth, keeping the valuable raw materials of the colonies in Britain's hands - Britain and other European countries were mainly producing agricultural products, competing in the same fields, so it appeared to make sense.

Question 30

Why did the view that Mercantilism was best change?

Answer 30

Britain was rapidly advancing as Europe's leading industrial power and so needn't fear competition 1819 - Singapore established as British free port - proved the success of free trade USA's removal of tariffs and controls and maintained prosperity (one of Britain's most profitable trading sectors )

Question 31

What were Adam Smith's economic ideas?

Answer 31

Free market economy - demands of the market should have final say Critical of import duties and government regulations Proposed a theory of an economic cycle built upon self interest which would promote a developing economy Self regulating market

Question 32

In what ways did Adam Smith have an impact?

Answer 32

1779 - government consulted him on how to respond to Irish demands for free trade Pitt - influenced by Smith to agree new trade treaty with France in 1786 reducing tariffs on oil and wine - further agreements were reached with Spain and Portugal

Question 33

In what ways was Adam Smith's impact limited?

Answer 33

1786 Navigation Acts were strengthened to ensure American shipping excluded from the West Indies 1815 corn laws passed - designed to keep grain priced high by excluding foreign grain from British markets

Question 34

Outline the Industrial/technological factors in the move to free trade

Answer 34

1800-1850 Britain became leading global industrial power 1851 UK produced 2/3 the worlds coal and more than 1/2 the cotton cloth. They also had far more advanced transport systems and access to plentiful raw materials Britain harnessed the use of steam power before its rivals.

Question 35

Outline the affect of demographic change in the move to free trade

Answer 35

19th Century - Britain had become an urban society - 1750 -15% live in towns, 1900 -85% Meant most British citizens no longer produced their own food and the country became more dependent on imported food 1846 - Britain grew 3/4 its grain, by 1914 that was less than 1/5 By 1913, raw cotton was no longer the main import - Food was - especially wheat, barley and frozen meat

Question 36

Outline the social factors in the move to free trade

Answer 36

Political campaigners had been exposing the extent of urban poverty and in 1840s the newspapers carried moving reports of the mass suffering in Ireland, which had been hit by the potato famine

Question 37

What was the significance of the industrial/technological factors in the move to free trade?

Answer 37

with its advanced factory production, use of machinery and rapid transport systems, Britain was able to produce goods more quickly, cheaply and efficiently than its rivals - in the free market, Britain could be confident its products would dominate and free trade would allow easy access to profitable export markets

Question 38

What was the significance of the demographic change which influenced the turn to free trade?

Answer 38

While free trade would mean British food producers faced competition, this would result in lower food prices for British woekres - which meant they had more disposable income to spend on goods and services which might boost the economy

Question 39

What were the commercial factors that led to the adoption of free trade?

Answer 39

Restrictions see as a hinderance to Britain's potential economic growth - tariffs made importing and exporting more difficult. , free trade would mean that countries like the US would be able to freely export their goods into Britain - thus the end of protectionism and tariffs would provide more commercial freedom and prosperity

Question 40

What the reasons related to national finances that caused the move to free trade?

Answer 40

When Peel became PM in 1841 he argued that free trade and tariff reduction was the key to the success of the British economy. Free trade would stimulate industry, spark greater consumption and the government would earn more through taxation on goods and services

Question 41

Give examples of evidence that supports Peel's arguments on the effectiveness of free trade

Answer 41

Recovery from an inherited debt of 7.5 million to a surplus of 4 million between 1841 and 1844

Question 42

What was the significance of the 1832 great reform act in terms of the adoption of free trade?

Answer 42

Changed constituencies and increased the franchise to articulate and organised middle class voters who were against protectionist measures and pressured for free trade

Question 43

What was the problem that led to the corn laws?

Answer 43

During the napoleonic wars there was a naval blockade - made it difficult to import food. Meant British food producers could sell all their produce at a high price, without foreign competition - when the wars ended, there was an oversupply of corn, leading to a decrease in prices

Question 44

What were the corn laws?

Answer 44

Tariffs implemented on imported corn to ensure that the price of British corn did not fall

Question 45

What were the problems with the navigation Acts?

Answer 45

Custom duties imposed on the colonies led to protest and boycotts Smuggling became common and punishments were resented Strongest opposition came from manufacturers, merchants and plantation owners; articulate members of colonial socirty By the early 19th century there were many exemptions and the acts were being bypassed

Question 46

what did the navigation acts do?

Answer 46

Controlled ships and shipping Excluded use of foreign ships Insisted on the use of British ports

Question 47

What does geopolitical mean?

Answer 47

The combination of geographical and political factors

Question 48

What is an entrepot?

Answer 48

A port, city or other centre to which goods are brought for import and export, and for collection and distribution

Question 49

What were the problems for trade with China?

Answer 49

foreign trade was heavily regulated by chinese authorities - Europeans not permitted to leave their trading base at Canton - were only licensed to deal with a guild of merchants and were taxed heavily by local governor

Question 50

When was Singapore acquired as an entrepot?

Answer 50

1819

Question 51

Why was the acquisition of Singapore so important?

Answer 51

Brought massive improvement to trade between China and Britain - products such as tea, silk and porcelain could be easily imported Singapore developed as a free trade hub with no taxes or tariffs and became a model for later British ports Became a prime example of the potential success of free trade It established Britain as the dominant commercial power in East Indies (reducing Dutch influence) Singapore became a useful naval base for attacking pirates in the Malacca straits

Question 52

How was the future of British Singapore secured for Britain?

Answer 52

By its rapid growth - the governors took note of this and thus offered up Bandola and Sumatra to the Dutch - trade worth 400,000 Spanish dollars passed through, in 1819, but by 1824 this had increased to 11 million spanish dollars

Question 53

How did Sir Stamford Raffles acquire a trading base in Singapore and what was the problem with how he did this?

Answer 53

He arranged a treaty with local rulers - the British parliament and government were initially unaware of new settlement - Dutch were angered at the encroachment on their territory

Question 54

When was Hong Kong acquired as an entrepot?

Answer 54

1842

Question 55

Why was the EIC struggling to make a profit in its trade with china? What was their solution?

Answer 55

Chinese demanded for British wool and Indian cotton was limited - did not match the ever-growing British market for chinese goods - negative balance of trade Switch to trading opium

Question 56

What were the British technological and industrial superiorities which ensured a victory in the first opium war?

Answer 56

16 men of war (warships) Some of the battles lasted less than an hour Iron warship Nemesis with 32 pounder guns 3,000 British troops

Question 57

By 1839, what had chinese opium imports reached?

Answer 57

2,553 tonnes - balance of trade was reversed

Question 58

What did the Chinese government do in response to the EIC's increase in opium imports?

Answer 58

In 1839, they blockaded the settlement in Canton, effectively holding the merchants there hostage, and demanded that they surrender their goods Over 1,000 tons of opium were burned

Question 59

What was the significance of the Acquisition of Hong Kong?

Answer 59

Gave direct access to Chinese trade and ports 5 more ports opened up to European trade afterwards Deep water port with anchoring for ocean going vessels Huge growth in trade - between 1844 and 1861 number of ships increased 5x In 1840s Hong Kong handled 75% of the entire Indian opium crop

Question 60

When was Shanghai opened up to trade?

Answer 60

1842

Question 61

What were the terms of the Treaty of Nanking?

Answer 61

6 million dollars in compensation, 3 million in debts to British merchants and 12 million in reparations cede Hong Kong to Britain Import tariffs standardised at 5% British citizens given legal protection in China lift restrictions to traders in Canton

Question 62

Why was the opening up of Shanghi so important?

Answer 62

already the principle port of china - situated at the mouth of the Yangtze river - opened up the interior of China

Question 63

What affect did the opening up of Shanghai have on the opium trade?

Answer 63

it allowed it to flourish - Opium imports grew steadily, reaching 6,500 tons of Opium in 1880

Question 64

Why did British merchants benefit from the Taiping Rebellion des[ite the fact 20-30 million Chinese died in the fighting?

Answer 64

The international community in Shanghai wee never seriously threatened by the warfare - Shanghai businessmen benefitted through the arms sales to the embattled china emperor British convinced the Chinese government to outsource the collection of customs tariffs to them - employed 3,000 people

Question 65

When was Zanzibar acquired as an entrepot?

Answer 65

1890

Question 66

What was the great game?

Answer 66

Political and economic rivalry between the Russian and British empires for supremacy in central Asia during 19th century

Question 67

What was the main reason Britain leased Weihaiwei in 1898?

Answer 67

To protect their chinese interests by overseeing developments in Russian-controlled Port arthur

Question 68

When was Weihaiwei leased?

Answer 68

1898

Question 69

What were the two main reasons for the acquisition of entrepots?

Answer 69

Economic reasons Geopolitical reasons

Question 70

In what ways was the acquisition of the Suez Canal shares a new departure in British trade policy?

Answer 70

Financial transaction using a private banker Opportunistic - not an approved government policy Ostensible motivated by financial reasons but actually geopolitical too Hugely beneficial for Britain financially and commercially - transformed route to India

Question 71

In what ways was the acquisition of the Suez Canal shares not a new departure in British trade policy?

Answer 71

Trying to improve trade routes - similar to Singapore Raffles acquiring Singapore - behind government's back Use of Geopolitics - Singapore, Hong Kong

Question 72

What was British shipping tonnage passing through the canal in 1870 compared to 1890?

Answer 72

1870 - less than 300,000 1890 - over 5 million

Question 73

What had the share dividends of the suex canal risen to by 1911?

Answer 73

33%

Question 74

What percentage share of the suez canal did the British have?

Answer 74

40% share

Question 75

Why was the coal industry important to Britain?

Answer 75

As steam power became vital in factories and transport, demand for coal soared - with the advent of steamships, it became crucial

Question 76

How many tons of coal was Britain producing in 1790,1816,1854 and 1913?

Answer 76

1790 - 7.6 million tons 1816 - 16 million tons 1854 - 57 million tons 1913 - 94 million tons

Question 77

In the 19th century, what was the principle product that Britain produced and exported?

Answer 77

textiles

Question 78

By the mid 1830s, how much of the total value of all British foreign exports did cotton account for?

Answer 78

more than half

Question 79

in 1913, how much of the world trade of textiles did Britain have?

Answer 79

70%

Question 80

Where did Britain get their cotton from in 19th century?

Answer 80

Efficient and cheap import from American colonies and later Egypt and India - especially when American supplies were stopped in the American civil war 1860-65

Question 81

What was the informal empire?

Answer 81

British dominance of trade in parts of the world which had never been part of the empire, e.g. South America, China, the Ottoman Empire and parts of Africa

Question 82

How did the British intervene in South American countries as they gained their independance from Spanish and Portugese rule from 1830 onwards?

Answer 82

Removing barriers to British trade and finance Eradicating the slave trade Protecting British economic interests

Question 83

Outline the growth of investment of the British in South America (between 1826 and 1865)

Answer 83

1826 - £30 million 1865 - over £80 million

Question 84

By the 1850s, what percentage of British exports and imports was South America responsible for?

Answer 84

10% of exports and 10% of imports

Question 85

In the first half of the 19th century, what was trade with North America like?

Answer 85

They were each other's largest trading partner - with an average of 40% of US imports coming from Britain - consisted largely of primary produce e.g. raw cotton going to Britain with manufactured goods, cotton cloth going to the US

Question 86

In the early 1900s, what percentage of Britain's trade was conducted with the US?

Answer 86

20% - up to the outbreak of WW1

Question 87

What beneficial roles did India play to improve British trade?

Answer 87

Was a provider of raw materials for British Industry and a market for British manufactured goods

Question 88

By 1900, what were the goods coming in and out of India?

Answer 88

iron, steel, cotton goods, engineering products Jute, Raw cotton, rice, tea, oil-seed, wheat and hides

Question 89

What significant event boosted trade with specifically India?

Answer 89

The opening of the Suez Canal in 1869

Question 90

What were the main three products that Britain imported from China?

Answer 90

tea, silk and Porcelain

Question 91

What products did Britain sell to China?

Answer 91

initially it was wool and cotton, but as there was a serious trade imbalance, this was delt with by the export of Indian grown opium

Question 92

To what extent were trade routes not responsible for Britain's growing commercial prosperity in the 19th century?

Answer 92

development of key entrepots important to prosperity Commercial prosperity largely due to Britain's industrial dominance e.g. coal, cotton and steam power - not related to new trade routes Some of Britain's main trading partners, such as North America, were well established in 18th century and continued to be important e.g. cotton industry - not reliant on new trade routes

Question 93

In 1830, why was Zanzibar an important trading post - what displays this?

Answer 93

an important trading post for slaves and iory - the Sultanate of OMAN moved their capital to Zanzibar and created the sultanate of Zanzibar

Question 94

From 1815, what was the main aim of Britain in Zanzibar?

Answer 94

Supress the slave trafe - using the royal navy, they convinced the Sultan to ban the export of slaves from Zanzibar (50,000 had been traded annually.

Question 95

When was the German trading company set up?

Answer 95

1884

Question 96

What was the British response to the GErman trading company?

Answer 96

William Mackinnon raised 250,000 to create the British East Africa Association to secure British interests in East Africa

Question 97

What was different about the British East Africa Association compared to other British organisations?

Answer 97

It never made money, only helped the government establish a series of East African protectorates in 1895 and funded railway construction from Mombasa to Uganda in 1896

Question 98

What was the deal made in 1890 with regards to Zanzibar?

Answer 98

Between Germany and Britain - Germany gave up its rights in Zanzibar in exchange for a small island in the North Sea - Britain took Zanzibar as a protectorate, despite the Sultan not being included in these negotiations at all.

Question 99

How did Britain react to the new Sultan in 1896 in Zanzibar?

Answer 99

they preferred a different candidate so bombarded the city - 500 citizens died in only 38 minutes - 1 British soldier was injured

Question 100

In what ways was the repeal of the navigation acts not a turning point in British trade policy?

Answer 100

Free trade policies had been expanding for years - e.g. abolition of corn laws and sugar duties Pretty much all other tariffs had been abolished

Question 101

In what ways was the repeal of the navigation acts a turning point in British trade policy?

Answer 101

Changed the pattern of Britain's trade - became less dominant Reduced smuggling and hostility (e.g. USA/West Indies) other countries also encouraged to reduce trade restrictions e.g. France in 1860 Repeal followed by a period of unrivalled trade prosperity (but this was likely due to a mix of repeal of tariffs too)

Question 102

Give the stats to show Britain's period of unrivalled trade prosperity after the repeal of the Navigation acts

Answer 102

trade grew 10x By 1913 Britain made up 25% of the world's imports and British imports boomed

Question 103

What were the three significant changes introduced by Peel?

Answer 103

Many tariffs cut Income tax reintroduced (to address budget deficit and offset loss of income from duties) Sliding scale of corn duties reviewed, reducing the rate of tariff

Question 104

What was the problem which led to the sliding scale of tariffs rather than the corn laws?

Answer 104

Tory government under increasing pressure to remove or reduce the duties on corn - leading political thinkers (e.g. David Ricardo) argued the corn laws inflated agricultural rents and diminished profits, impeding national economic growth - however, many landowners who supported the laws in voting population - so compromise

Question 105

What did the Great reform act do and when was it passed?

Answer 105

1832 Reformed constituencies to make them more representative Franchise widened to give the vote to more of the middle classes dominance of the landowners and country squires in parliament was challenged

Question 106

What was the importation Act and when was it passed?

Answer 106

The repeal of the Corn Laws - 1846

Question 107

What did the Anti-corn law League argue?

Answer 107

That the Corn Laws were a 'bread tax' which helped idle landowners at the expense of poor workers and hard working businessmen - the laws reduced the disposable income of working families and pushed up wages as workers had to afford high food prices - stifled growth in the economy

Question 108

What were the political effects of the Importation act?

Answer 108

It led to a split in the tory party, leading to Peel's resignation and the Whigs coming into power - they further expanded free trade

Question 109

What were the effects of the Importation Act on farming?

Answer 109

Was followed by a period of agricultural prosperity in the 1850s and 60s, suggesting successful farming was not dependent on protectonism

Question 110

What were the effects of the Importation Act on British trade?

Answer 110

It had an immediate, positive impact: British vessels employed in foreign trade increased between 1839-45 from 2.8 million tons to nearly 16 million tons, while the value of british exports grew from £52 million 1839 to £58 million 1844

Question 111

What was the key issue which prompted the Importation Act (immediate)?

Answer 111

The Irish Famine of 1845

Question 112

In what ways was the importation act less significant?

Answer 112

Had been previous reductions in tariffs Smiths ideas had already been partially accepted (e.g. Pitt trade deal, reductions in trade duties and of EIC monopoly)

Question 113

In what ways was the Importation act more significant?

Answer 113

Formal adoption of free trade of main foodstuffs for the first time; followed by further tariffs reduction Reflected change in priorities i.e. needs of industry/business/urban population over landed interests and the navy Set in place change in patterns in trade - huge growth in global trade and a 'formal empire'