AQA · A-Level · History

    Course version: 7042 · Version from Sept 2017

    The development of trade and commerce; the economic impact of war

    Full specification wording

    1J The British Empire, c1857–1967 – Imperialism challenged, 1914–1947 (A-level only): The development of trade and commerce; the economic impact of war

    Between 1914 and 1947, the British Empire's trade and commerce underwent significant shifts, driven by the economic impact of two World Wars.

    Checked against the AQA 7042 specification (opens in a new tab) on .

    • Point 3 of 6
    • 4 key terms

    Study notes

    From the checked teaching notes for this specification point.

    The idea

    Between 1914 and 1947, the British Empire's trade and commerce underwent significant shifts, driven by the economic impact of two World Wars. The First World War disrupted global trade, increasing reliance on imperial resources. The Great Depression prompted a departure from Free Trade, culminating in the 1932 Ottawa Conference which established 'Imperial Preference' and a protected trading bloc. The Sterling Area further integrated imperial economies. However, the Second World War had a devastating economic impact. Britain accumulated massive debts, notably £3 billion in sterling balances owed to nations like India, and relied heavily on US Lend-Lease. This economic exhaustion weakened Britain's ability to maintain its empire, shifting policy towards colonial development, as seen in the Colonial Development and Welfare Acts of 1940 and 1945.

    What earns the marks

    • Analyse the development of trade and commerce, focusing on the shift to Imperial Preference at the 1932 Ottawa Conference.
    • Evaluate the economic impact of the First World War, including the disruption of traditional markets and increased reliance on imperial trade.
    • Assess the financial devastation of the Second World War, noting the accumulation of massive sterling balances and reliance on US loans.
    • Explain how economic exhaustion post-1945 influenced imperial policy, such as the implementation of the Colonial Development and Welfare Acts.

    Common mistakes and how to put them right

    • Claiming Britain maintained Free Trade throughout this period.

      Put it right: Britain abandoned Free Trade in the 1930s, adopting Imperial Preference at the 1932 Ottawa Conference.

    • Ignoring the economic impact of the First World War.

      Put it right: Acknowledge how WWI disrupted global markets and increased Britain's economic reliance on the Empire.

    • Assuming the Empire remained a source of immense wealth after 1945.

      Put it right: Recognise that by 1945, the Empire was a significant financial burden, with Britain owing massive sterling balances to colonies like India.

    Exam tips

    • Use specific examples like the 1932 Ottawa Conference to demonstrate the shift towards protectionism and Imperial Preference.
    • Link the economic impact of the Second World War directly to the acceleration of decolonisation, citing the burden of sterling balances.
    • Contrast the economic strategies of the inter-war years with the post-1945 reality of British near-bankruptcy.

    Try the lesson

    The start of the 1J The British Empire, c1857–1967 – Imperialism challenged, 1914–1947 (A-level only): The development of trade and commerce; the economic impact of war lesson, made from checked teaching notes for this specification point.

    Have a go first

    How did the British government significantly alter its imperial trade policy at the Ottawa Conference in 1932?

    Listen

    Between 1914 and 1947, the British Empire's trade and commerce underwent significant shifts, driven by the economic impact of two World Wars. The First World War disrupted global trade, increasing reliance on imperial resources. The Great Depression prompted a departure from Free Trade, culminating in the 1932 Ottawa Conference which established 'Imperial Preference' and a protected trading bloc. The Sterling Area further integrated imperial economies. However, the Second World War had a devastating economic impact. Britain accumulated massive debts, notably £3 billion in sterling balances owed to nations like India, and relied heavily on US Lend-Lease. This economic exhaustion weakened Britain's ability to maintain its empire, shifting policy towards colonial development, as seen in the Colonial Development and Welfare Acts of 1940 and 1945. A strong answer earns marks for these points. Analyse the development of trade and commerce, focusing on the shift to Imperial Preference at the 1932 Ottawa Conference. Evaluate the economic impact of the First World War, including the disruption of traditional markets and increased reliance on imperial trade. Assess the financial devastation of the Second World War, noting the accumulation of massive sterling balances and reliance on US loans. Explain how economic exhaustion post-1945 influenced imperial policy, such as the implementation of the Colonial Development and Welfare Acts. A common slip: Claiming Britain maintained Free Trade throughout this period. Instead, Britain abandoned Free Trade in the 1930s, adopting Imperial Preference at the 1932 Ottawa Conference. Exam tip: Use specific examples like the 1932 Ottawa Conference to demonstrate the shift towards protectionism and Imperial Preference.

    See it

    A vertical flowchart with ten nodes. The First World War disrupts global trade, leading to increased reliance on imperial resources. This is followed by the Great Depression, which leads to a departure from Free Trade. That leads to the 1932 Ottawa Conference establishing Imperial Preference and a protected trading bloc, which leads to the Sterling Area integrating imperial economies. This leads to the Second World War bringing massive debts and sterling balances owed to nations like India, and then to reliance on US Lend-Lease. This leads to economic exhaustion weakening Britain's ability to maintain its empire, which finally leads to a shift towards colonial development through the Colonial Development and Welfare Acts of 1940 and 1945.
    It shows how the two World Wars and the Great Depression drove imperial trade from Free Trade to Imperial Preference and the Sterling Area, and then to economic exhaustion and a shift towards colonial development.

    Key words

    Say what each word means before you turn the card.

    Imperial Preference and protectionism

    Try answering aloud or in your head before turning the card.

    The Sterling Area

    Try answering aloud or in your head before turning the card.

    The economic cost of total war

    Try answering aloud or in your head before turning the card.

    Colonial development and welfare

    Try answering aloud or in your head before turning the card.

    See every definition
    Imperial Preference and protectionism
    A protected trading bloc established at the 1932 Ottawa Conference, marking a departure from Free Trade.
    The Sterling Area
    A development that further integrated imperial economies.
    The economic cost of total war
    The Second World War had a devastating economic impact, with Britain accumulating massive debts and relying heavily on US Lend-Lease.
    Colonial development and welfare
    A shift in policy towards colonial development, as seen in the Colonial Development and Welfare Acts of 1940 and 1945.

    Label the diagram

    Some boxes have lost their names. Pick the right name for each number.

    The diagram again, with 3 boxes numbered instead of named. A vertical flowchart with ten nodes. The First World War disrupts global trade, leading to increased reliance on imperial resources. This is followed by the Great Depression, which leads to a departure from Free Trade. That leads to the 1932 Ottawa Conference establishing Imperial Preference and a protected trading bloc, which leads to the Sterling Area integrating imperial economies. This leads to the Second World War bringing massive debts and sterling balances owed to nations like India, and then to reliance on US Lend-Lease. This leads to economic exhaustion weakening Britain's ability to maintain its empire, which finally leads to a shift towards colonial development through the Colonial Development and Welfare Acts of 1940 and 1945.

    • 1Box 1

    • 2Box 2

    • 3Box 3

    0 of 3 labelled

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