Tag: british exploitation of the indian economy

Advantages of invention of refrigerated ship-
1-This reduced the shipping costs and lowered meat prices in Europe.
2-The poor in Europe could now consume a more varies diet.
3-To the earlier, monotony of Bread and potatoes many, not all could add meat, butter or egg.
4- Better living conditions promoted social peace within the country and supported for imperialism abroad.

Population growth from the late eighteenth century had increased the demand for food grains in Britain. As urban centers expanded and industry grew, the demand for agricultural products went up, pushing up food grains prices. Under pressure from landed groups, the government also restricted the import of corn. The laws allowing the government to do this were commonly known as the 'Corn Laws'.

The Bretton wood system was based on fixed exchange rates. In this system the national currencies were pegged to the dollar at a fixed exchange rate. The Bretton woods system inaugurated an era of unprecedented growth of trade and incomes for the western industrial nations.

At different moments in the period of 700-1750 new technologies made their appearance like the persian wheel in irrigation, the spinning wheel in weaving and the firearms in combat. New foods and beverages arrived in the subcontinent-potaoes, corn, chillies, tea and coffee.

Britain and France made vast additions to their overseas territories in the late nineteenth century. Belgium and Germany became new colonial power. The US also became a colonial power in the late 1890s by taking over some colonies earlier held by Spain.

Protective tariffs are taxes, duties, or other roadblocks (generally in the form of monetary fees) placed on foreign goods by a national or state government in order to protect domestic products and markets. The increased fees levied on foreign goods are generally passed on to the consumer, making the foreign goods considerably more expensive than similar goods produced within the country.

Till the year 1870s, animals were shipped live from America to Europe and then slaughtered when they arrived there. But after this a new technology introduced namely, refrigerated ships, which enabled the transport of perishable foods over long distance.

The market crash weakened the nation's banks in two ways. First, by 1929, banks had lent billions to stock speculators. Second, many banks had invested depositors' money in the stock market, hoping for high returns. When stock values collapsed, banks lost money on their investments, and speculators defaulted on their loans. Having suffered serious losses, many banks cut back drastically on loans. With less credit available, consumers and businesses were not able to borrow as much money, sending the economy into a recession. Some banks could not absorb the losses they suffered and had to close. The government did not insure bank deposits, so if a bank failed, customers, including even those who did not invest in the stock market, lost their savings. As a growing number of banks closed in 1929 and 1930, a severe crisis of confidence in the banking system further destabilized the economy. News of bank failures worried Americans. Some depositors made runs on banks, thus causing the banks to fail. A bank run takes place when many depositors decide to withdraw their money at the same time, usually out of fear that the bank will collapse. Most banks make a profit by lending money received from depositors and collecting interest on the loans. The bank keeps only a fraction of depositors' money in reserve. Usually, that reserve is enough to meet the bank's needs. If too many people withdraw their money, however, the bank will collapse. By 1932, about one in four banks in the United States had gone out of business.