IAFF 1005 Lecture Notes - Lecture 11: Foreign Exchange Risk, Mercantilism, Pound Sterling
Document Summary
100 euros = 22 ounces of gold. Other countries follow germany, 1971, us, 1873. British economic hegemony = key to establishing and maintaining free trade. But hegemony is not perfectly correlated with openness. Britain actually had little leverage in persuading other states to lower their tariffs (stein) New ideas necessary, but not suf cient to explain adoption of free trade. Owners of inputs used in exporting vs. import- Agriculture, iron, and steel vs. silk and wine. Northeastern textiles, iron, and steel vs. southern cotton and tobacco. Iron and steel + agriculture favor protection. Formations of the triple entente: france-russian alliance - 1894, entente cordiale, uk-france - 1904, triple entente, uk-france-russia - 1907. Exploitation of military technology, understanding of logistics. Little communication between diplomats and military men. Industrialization > growth of urban working class, socialism. Social democratic party (sdp) = growing sharing of reichstag. Use of weltpolitik, eet policy, threats, war to unify country.
