¡Descarga Globalización Industrial y Economía Internacional: Capitalismo Global, 1850-1914 y más Diapositivas en PDF de Historia Económica solo en Docsity! 2. INDUSTRIAL CAPITALISM AND INTERNATIONAL ECONOMY 2. The First Wave of Capitalist Globalisation, 1850-1914 • What is Globalisation? Movement of production factors across national borders: 1) Goods & Services: Trade 2) Labour: Migration 3) Capital • Technology Average Tariffs on Total Imports
60
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USA
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| United Kingdom
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Average Tariff Rates (%)
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1830 1840 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Average Tariff Rates on Total Imports, 1830-2010
Sources: Imlah, Economic Elements
In Favour of Free Trade: • Britain • Also small countries: Netherlands, Switzerland, Denmark Reluctant to Free Trade: • EUA (large domestic market): Alexander Hamilton, 1791 • Germany (Zollverein 1833= Customs Union): Friedrich List, 1837 Expansion of Free Trade: Cobden-Chevalier Treaty, 1860 Treaty between Britain and France • Britain removed all duties on French goods except brandy and wine • France committed to reduce tariffs on British goods. Maximum tariff 30% • Most favoured Nation clause: All treaties sign by France that include special conditions Britain would also benefit Reduction in Transport costs
British Index
Shilings perton of casí, 1913 prices
A A A MESES
1740 1760 1790 1300 1820 1840 1880 1990 1900 1920
Figire24 Freightiateindices, 1741-1913 fdeflated by UK GNP
defator]
Source: Harley (1988, figure D).
Growth of International Trade Exports 1913=100 Growth CAGR GDP 1913=100 1820 3 26 1870 24 4.2 41 1913 100 3.3 100 1950 139 0.9 197 1998 2738 6.4 1247 Maddison (1997)(2001) Exports plus imports
1876-80 1913
Europe 66.9 62
North-America 9.5 13.2
Latin-America 5.4 7.6
Asia 12.9 11.1
Africa 1.9 3.7
Oceania 3.4 2.4
2) Labour: Migration • 1821-1915: 46 million emigrated. 44 were Europeans European Migration 1821-1915
(millions)
Germany
Iberian
Penin.
Austria.H
ungary
1821-1850
0.6
1851-1880
2.1
0.3
0.2
1881-1915
Font:
2.2
4.3
4.2
Kenwood, A.G. y A.L. Lougheed, Historia del desarrollo
económico internacional, Madrid, 1990, p.84
Why did they emigrate? (1) Supply side: -Demographic transition -Agriculture productivity increases -Industrial revolution -Political or Religious causes -Lift Restrictions to emigration -Clearances Consequences of migration for Ireland • Real wage in agriculture was 19-40% higher • Non-farm wage was 24-59% higher • Land rents reduce by 33-54% due to labour scarcity • Rates of return reduce by 28-45% • Winners: workers that stayed behind • Losers: Landlords & Capitalists Impact of immigration in the US • Unskilled jobs in slow growing low wage employment: crowding out natives • Settled in fast expanding states in the east • 1% increase in foreign population share caused a 1-1,5% decrease in unskilled urban wages (1890-1915) • 1870-1910: Labour force increased by 24% Real wages decreased by 9% Migration and Convergence • Mass migration was the main force for convergence between 1870-1914 accounting for 40% Triangular Trade
Plantation Crops sent
from the Americas
to Europe
Manufactured
Goods sent from
Europe to Africa
Slaves sent
from Africa
to the Americas
The Triangular Trade
8 Alistair Boddy-Evans
• Indentured labour: -Abolition of Slave Trade in Britain, 1833 -India: Mauritius, Sri Lanka, South-Africa, Jamaica, Trinidad& Tobago -China: Philippines, Siam, Peru, EUA, Cuba, 3)International Capital Movements Foreign Investment estimations (million pounds/year) 1815-1840 4 1840-1850 30 1855-1870 56 1870-1890 116 1890-1914 340 Capital Exporting Countries, 1914
% Investments abroad
UK 43
France 20
Germany e
Belgium, Holland Switzerland 12
USA 7
Others 9)
Capital Receivers, 1914
Destination % capital exported
Europe 27
Rusia:10%
Spain, Austria-Hungary, Italy,
17%
North-America 24
EUA 16%
Canada 8%
Latin America 19
Argentina, Brazil, Mexico, 16%
Asia 16
Africa 9
Oceania 5
On what did they invest? • Public Sector: Bonds to finance public budget deficits • Private sector: a) Infrastructures: railway b) Public services: water, electricity, c) Raw Materials: mining, food F rance G erm any, B elgium UK International Monetary System • Why do we need a monetary system? • Barter • Commodity money: copper, shells,.. • Coinage • Bills of Exchange • Banknotes Int’l Monetary Systems from1800 • 18th-19th c.: Bimetallism (gold and silver) • 1870-1913: Classical Gold Standard • 1914-1922: variable exchange • 1922-1931: Gold Exchange Standard • 1932-1950: variable exchange/monetary clubs • 1950-1971: Bretton Woods • 1972-: variable Adoption of Gold Standard From 1871 to 1900 • UK since 1816 • 1871 Germany • 1873 Belgium, Italy, Switzerland • 1875 Denmark, Norway, Sweden, Netherlands • 1876 France • 1879 Austria • 1893 Russia • 1900 EUA (officially) • 1£ = 7,322 gr gold = 4,868$ 7.322gr = 4,868$ Increase $ demand 1£ = 4$ Change £ into gold 1£ = 7.322 gr Gold 4,868 $ =1,217£ dollars Adjustments with Gold Standard Reserves Trade Deficit Gold outflow Interest rate Exports Imports Trade SurplusCapital inflow Gold inflow Unemployment wages pricesMonetary base Investment Adjustments with Gold Standard Reserves Trade Surplus Gold inflow Interest rate Exports Imports Trade DeficitCapital outflow Gold outflow Unemployment wages pricesMonetary base Investment
