IR 212 Lecture 4: Lecture 4

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7 Feb 2017

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Week 3 Lecture 4
Tuesday 24th Jan
Key Terms
- Industrial revolution
- British world system
- British empire in India vs ‘treaty – ports’ system in China
- Free trade
· Disruptive innovation Industrial revolution
· Mainly in Britain, NW England only in a few places
· Factories Technological change, industrial output increasing, mechanization of
production machines = steam power
· The energy supply for activity became steam engine, previously just hydro power
· In middle of 18th century, changed to steam power- turning steam into motion, much more
efficient opposed to just waiting for the wind to turn a turbine
· Coal was used to burn, more energy than wood England was a coal mining field
· Steam engines pumped out the water to access the coal
· Social system bringing people into factories
· Cotton spinning factories turning cotton fibre into yarn
· England, you can keep your profits from your invention
Britain’s capital – Imperialism
· Monopoly profits from East India trade shore up British Balance of payments, thus freeing
domestic British capital for private investment
· To get the Industrial revolution going you need capital and money to invest, In Britain the
money was there which was an advantage
· British expenditure on Foreign wars was high during the industrial revolution
· Fighting the Napoleonic wars
· Trade deficit have to send money in exchange for the goods you were receiving
· Balance of payments deficit, the money coming in was less than the money going out
· Britain already had a colony with great value, India
· By owning India and monopolising the trade between Europe and India, Britain could
exploit it to get more capital and get out of the balance of payment deficit
· ‘Shaking the tree’ taking the money from India, with the transfers from India still an
initial deficit from 1772 1802 but much less than it would be without Indias capital, India
helps Britain get out of the balance of payment deficit after 1802
· Therefore, Britain can finance the revolution and export cotton to India 1821, previously
India exported cotton to Britain
· Britain destroyed the worlds manufacturing system
Industrial Revolution - trade secrets Britain can no longer keep
French style of internal operations laissez-faire (let it be)
French were not directly controlling their economy, allowing the free market - similar
to British liberal capitalism
Germans were trying to direct market to maximise the state’s power internally - e.g
how the german railroad was laid for military operations - maximised the power
projection of the German Army
Military Industrial revolution
· Steamships faster, more capacity, flatter hull
· Guns: faster loading, longer range, better aim
· Medicines allowing Europes penetration of tropical interior
Steam ships and the Opium war 1839
British controlled Opium which was grown in India
Chinese government didn’t like Opium imports
China dragged into the British free trade ‘world system’
Treaty of Nanjing (1842)
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