HIS385H1 Lecture Notes - Lecture 7: Wall Street Crash Of 1929, Hong Kong Dollar, Imperial Preference
Document Summary
Hk"s economy relied on trade with china and westerns. Two policies introduced has important effect on hk. -imperial preference tariffs: encourage the colonies to trade more between one n another-- reduce import/ export tariffs and duties business come from the economy outside hk. When hk trade transferred from solid to manufacture sector has been replaced. Hk sold their cheap goods to independent countries who was controlled by the empire (singapore) This policy helped hk economy to develop, 1950s-1960s industrialization (10-15 years) hk became fully industrialization. -manufacturing sector, low quality, but cheap in 1970s. British empire to exchange pound at fixed rate. Hk dollar is fixed to british pound then. Hks 16= 1pound (until 1968)--> hks stabilized. After 1968, hk economy has industrialized, this policy was no longer affect turn into a basket of currencies. During the industrialization, manufacturers in hk took the advantage to sell good and acquire cheap materials. Allow hk to recover from british depression.