Trade and Commerce 1914-1947 Flashcards
(25 cards)
economic impact of WW1 on Britain
costed 1 million lives
cost £35 billion - 13x more than 2cnd boer war
borrowed $4 billion from the USA
much of capital investment overseas wiped out and pound sterling had to be removed from gold standard
impact of WW1 on exports
production for war had been prioritised over making goods for exports
Britains competitors were able to win markets traditionally dominated by the British
impact of WW1 on industries
things like textiles and ship building, which created income to pay for the Empire faced new competition e.g. Japan in textiles
impact of WW1 on the financial sector
banks and financial institutions also faced new competition and so economic burden of empire grew as ability to pay for it diminished
why did overseas investment reduce in the 1930s
Great Depression
collapse of international trade
financial crisis in 1931 forced country off the gold standard again
before WW1, imports and exports to empire as a percentage
exports = 37%
imports = 27%
economic impact of war on India
£146 million to war effort
inflation during
before war - 2/3 of imports came from Britain and so wartime disruption
BUT strengthened Indian manufacturers who began to capture domestic markets
placed high taxes on India - 11% in 1917, 25% in 1931
economic impacts of WW1 on Canada and the Anzacs
Canada - growing industrial power and so turned to the USA for investment and markets
Anzacs - relied on British market heavily and so were hit hard by the disruption of trade
British policy towards imperial trade in the 1920s
tried to recreate economic system from before 1914
returned to the gold standard in 1925 to stabilise international trade
Colonial Development Act 1929 is only exception
British policy towards imperial trade after the Great Depression
greater emphasis on the importance of empire and imports increased
forced to abandon the gold standard in 1931
Sterling Area
countries of empire fixed the value of their currencies to sterling, which gave British access to markets while ensuring a profitable outlet for British overseas investment, able to soften the impact from the GD
Canada did not join - wanted to make closer ties with the USA
impact of the Great Depression in Britain
15% unemployment
closure of manufacturing - hit North hard - Jarrow 68% unemployment
value of imperial trade in the inter war period- statistics
imperial exports in Britain, 1913 = 37%, 1934 = 44%
value of imports from Empire, 1913 = £191 mill, 1934 = £257mill
imperial imports, 1913 = 25%, 1934 = 35%
imperial preference 1932
britain turned to this as world trade shrank
there was opposition in the Dominions as free trade was abandoned, led to the Ottawa Conference
Britain introduced a 10% tax on all imports, Dominions were exempt
Britain and the colonies gave each other preferential treatment in own markets - Canada not part
exports to Empire during inter war
mainly cotton textiles in Asia and India
began to fall during inter war period due to tough competition from Japan
remained prominent until 1930s
importance of imperial trade (Dominions and India)
exports to Dominions, 1913 = 17%, 1934 = 25%
exports to India, 1913 = 11%, 1934 = 8%
imports from Dominions 1913 = 14%, 1934 = 24%
imports from India, 1913 = 7%, 1934 = 6%
value of trade for Empire (inter war)
Australia and New Zealand faced economic problems as cost of imports from Britain outstripped exports = debts with Britain
Burma and Malaya were hit due to exports of tin and rice
incomes fell = poverty and dissatisfaction with colonial rule
evidence trade between the wars helped Britain
important supplier of cheap raw materials and food stuffs
Empire Marketing Board increased trade, 1938 = 41% of British imports came from Empire
secured markets for British goods due to imperial preference
helped to secure value of pound through Sterling Area
evidence trade with the empire did not help during the inter war period
some area of empire were hostile to Britain as they thought they were being exploited
value of exports to empire declined
protected trade with empire
economic impact of WW2 on Britain
lost 11.7million tonnes of shipping and 54% of the country’s merchant fleet strength from the start of the war
loss of colonies in South East asia to Japan cut off supplies to vital materials - Singapore
diversion of industrial production to producing weapons meant less exports1/3 of overseas assets were sold
colonial reserves held in Britain were used to pay for the war
Lend Lease
borrowed from the USA from 1941 and emerged from the war with massive debts
ended in 1945
Keynes - negotiated a massive US loan (nearly 1 bill) but pound sterling and to be made freely convertible to the dollars
issues after WW2
position as world power had been challenged by japan
emergent nationalist movements
approach taken after WW2
where the cost pf controlling a colony outstripped the potential value, imperial control was abandoned
in colonies of economic benefits, a new emphasis was placed on colonial development e.g. Rubber and Tin markets of Malaya received heavy investment
Colonial Development and Welfare Act 1940 and 1945
1940 - wrote off some colonial debts
provided colonial grants or loans of up to £5 million a year
1945 - increased aid available to colonies to £120million over 10 years, required each colony to produce a 10 year development plan showing how it would use its funds
