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.

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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.
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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.
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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.

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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.
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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.
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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

1High Water Mark of the British Empire, 1857-1914

2Imperial Consolidation & Liberal Rule, 1890-1914

3Imperialism Challenged, 1914-1967

4The Wind of Change, 1947-1967

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