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The economics of empire (benefits and costs (capital exports and British…
The economics of empire
Globalization, empires and imperialism
1875-1914 Globalized economy or age of empires?
Formal and informal empires (under certain forms of domination without losing independence for example Latin America under the influence of Britain economically)
benefits and costs
capital exports and British balance of payment
Britain imported more than it exported leading to a trade deficit but it was compensated by income from commercial services
merchant navy
insurance
foreign investment leading to surplus on british account
if Britain had not had a colonial empire then...
decrease of international trade
tariff imposed on british exports
less integration to the world economy
capital transfers played an important role in their development
negative aspects of capital export on national growth (studies showed that it is not true
negative impact on competitivness
Government loans not always put to productive use
military expenditure
te repay old debts
weak states sometimes forced to borrow beyond their means
infrastructure and urban developments
enabled natural resources to be developed and exported leading to economic growth
cost of loans linked to the risks that the market associated with it
Membership of the British Empire provided additional assurance
borrowing country's adherence to gold standard which is a guarantee for a good financial order