1.3.3

Products of Trade & Commerce

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Products of Trade and Commerce

Different areas in the British Empire specialised in different products.

Agriculture

Agriculture

  • The main exports from Canada, Australia and New Zealand were cheap foodstuffs and raw materials (wool) at a cheaper price than Europe could offer.
  • New Zealand exported wool and gold to Britain. 75% of all of New Zealand's exports went to Britain. Later, New Zealand exported frozen lamb to Britain.
  • The main exports from tropical colonies, such as South Africa, included cocoa, coffee, groundnuts, sugar, and palm oil.
  • The main exports from North America and the Caribbean were sugar and tobacco.
  • The main export from India was tea. India also exported opium to China, leading to the Opium Wars.
Mining

Mining

  • The main export from Nigeria was tin.
  • New Zealand exported gold to Britain.
  • The main export from the Gold Coast, Rhodesia, and South Africa (after 1886) was gold.
  • The main export from Sierra Leone and South Africa (Kimberley) was diamonds.
Industry

Industry

  • Industry in the British Empire was limited because it couldn't compete with manufacturing in Britain.
  • In the 1870s, almost 2/3 of New Zealand's imports came from Britain.
  • Britain was known as the 'workshop of the world' because of its prowess in manufacturing after the Industrial Revolution.

The Impacts of Trade and Commerce

There were pros and cons to trading with Britain.

Effect of trade on colonies

Effect of trade on colonies

  • Pros of trade with Britain:
    • British investors and speculators invested in local colonial infrastructure.
    • British colonies could borrow more money.
  • Cons of trade with Britain:
    • Being part of Britain's trading empire often involved losing national sovereignty and control of your country.
Effect of trade on colonies cont.

Effect of trade on colonies cont.

  • Most local investments were in infrastructure that was only accessible to the very rich. For example, India developed railway tracks for key routes well before running clean water was available for the population.
  • The local population had to pay taxes to Britain or British trading companies.
  • Trade led to the collapse of local indigenous industries. Countries were not encouraged to develop manufacturing industries, instead Britain wanted to export manufactured goods.
The revival of chartered companies

The revival of chartered companies

  • A chartered company was a private company that had been granted a royal charter (usually a monopoly) to operate.
  • The East India Company was a chartered company that had operated lawlessly and ruthlessly in a quest to make a profit, conquering regions and bribing MPs.
  • Chartered companies became key from the 1870s when Britain's economic supremacy was challenged by other European powers.
    • 1881: North Borneo Trading Company (specialised in coal, iron, and tobacco) founded.
    • 1884: Imperial Federation League founded.
    • 1889: British South Africa Company founded.
Jump to other topics
1

High Water Mark of the British Empire, 1857-1914

1.1

Development of Imperialism, 1857-1890

1.1.1Empires over Time1.1.2Key Questions About Empires1.1.3Expansion into Africa1.1.4History of Egypt1.1.5Control of Egypt1.1.6Control of Sudan
1.2

Imperial & Colonial Policy, 1857-1890

1.2.1The British Empire & India1.2.2The British Raj1.2.3International Relations with other Powers1.2.4Scramble for Africa1.2.5The Informal Empire
1.3

Trade & Commerce, 1857-1890

1.3.1Trade & Commerce in the Empire1.3.2Infrastructure of Trade & Commerce1.3.3Products of Trade & Commerce
1.4

Attitudes Towards the Empire, 1857-1890

1.4.1Explorers1.4.2Missionaries1.4.3Traders & Colonial Administrators1.4.4Government Attitudes Towards Imperialism
1.5

Relations with Indigenous Peoples, 1857-1890

1.5.1Relations with India1.5.2Relations with South Africa1.5.3British-Boer Relations
2

Imperial Consolidation & Liberal Rule, 1890-1914

2.1

Consolidation & Expansion in Africa, 1890-1914

2.1.1Consolidation & Expansion into Africa2.1.2Consolidation & Expansion in South Africa2.1.3Historical Interpretations: Expansion into Africa
2.2

Imperial & Colonial Policy, 1890-1914

2.2.1Policy in India2.2.2Policy in Egypt2.2.3Native Policy in Colonies2.2.4International Relations with Other Powers
2.3

Trade & Commerce, 1890-1914

2.3.1The Benefits of Trade2.3.2Costs of the Empire2.3.3Debates Over Trade
2.4

Attitudes Towards the Empire, 1890-1914

2.4.1Key Administrators - Chamberlain & Rhodes2.4.2Key Administrators - Baring & Milner2.4.3Key Administrators - Curzon2.4.4Government Attitudes to the Empire2.4.5National Efficiency & the Boer War2.4.6Popular Attitudes Towards Imperialism
2.5

Relations with Indigenous Peoples, 1890-1914

2.5.1Challenges in India2.5.2Challenges in Africa2.5.3Challenges in South Africa2.5.4Historical Interpretations of the Boer War2.5.5Relations & Business with Iran
3

Imperialism Challenged, 1914-1967

3.1

Expansion & Contraction of Empire, 1914-1947

3.1.1Impact of WW13.1.2Palestine3.1.3Ireland & WW13.1.4Impact of WW2 on the British Empire
3.2

Colonial Policy & Administration, 1914-1947

3.2.1Administration in India & Palestine3.2.2Administration in Iraq & the Dominions3.2.3Imperial Defence
3.3

Trade, Commerce & Economic Impact of War

3.3.1Economic Impact of WW13.3.2Inter-War Trade & Commerce3.3.3Economic Impact of WW2
3.4

Attitudes Towards the Empire, 1890-1914

3.4.1Colonial Administrators3.4.2Trusteeship3.4.3Gandhi3.4.4Montagu, Haig & Linlithgow3.4.5Cameron, Mitchell, Cohen & Furse - African Admins3.4.6Imperialist Ideals
3.5

Relations with Indigenous Peoples, 1914-1947

3.5.1Ireland & India 1914-19473.5.2The Middle East and Africa
4

The Wind of Change, 1947-1967

4.1

Decolonisation in Africa & Asia, 1947-1967

4.1.1Reasons for Decolonisation4.1.2Decolonisation in East & West Africa4.1.3Decolonisation in Central & South Africa4.1.4Decolonisation in Asia
4.2

Colonial Policy & Administration, 1947-1967

4.2.1Relations & Business with Iran after WW24.2.2The 'Winds of Change'4.2.3The Suez Canal Crisis - 19564.2.4International Relations 1947-1967
4.3

Trade & Commerce, 1947-1967

4.3.1The Economic Impact of WW2
4.4

Attitudes Towards the Empire, 1947-1967

4.4.1Colonial Administrators: Cohen & Arden-Clarke4.4.2Local Leaders in the Independence Movement4.4.3Pan-Africanism in Nationalism
4.5

Post-Colonial Ties, 1947-1967

4.5.1Windrush & Immigration4.5.2Commonwealth Immigrants Act4.5.3Residual Impact of the Empire
4.6

Relations with Indigenous Peoples, 1947-1967

4.6.1Challenges to Colonial Rule Post 19474.6.2Kenya & the Mau Mau Uprising4.6.3Nigeria & Rhodesia

Practice questions on Products of Trade & Commerce

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

  1. 1
    What proportion of New Zealand's imports came from Britain in the 1870s?Multiple choice
  2. 2
    What was Britain known as because of its prowess in manufacturing after the Industrial Revolution? Multiple choice
  3. 3
    Which of these was NOT a con of being part of Britain's trading empire?Multiple choice
  4. 4
    What were the disadvantages of being part of Britain's trading empire?Fill in the list
  5. 5
    When were the following chartered companies founded?True / false
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Infrastructure of Trade & Commerce

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