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The world changed profoundly in the nineteenth century. Economists identify three types of flows � the flow of trade, the flow of labour and the flow of capital within international economic exchanges. The nineteenth-century Britain lacked self-sufficiency in food because of tremendous population growth.
As a result, food grain prices were pushed up compelling people to import cheaper food from other countries. But these laws could not last long. They were abolished which brought striking changes in the British economy.
Food began to be imported into Britain more cheaply than it could be produced within the country. British agriculture was unable to compete with imports. They flocked to the cities or migrated overseas in search of a better future. The nineteenth-century world was a complete global world. Faster railways, lighter wagons and larger ships helped move food more cheaply and quickly from far way farms to final markets.
It happened because many European countries began to colonise overseas territories in the late nineteenth century. The US also became a colonial power in the late s by taking over some colonies earlier held by Spain.
Africa had abundant land and mineral resources. For centuries, land and livestock sustained African livelihoods and people rarely worked for a wage. In the late nineteenth century, Europeans came to Africa and established plantations and mines to produce crops and minerals for export to Europe. But they faced problems of shortage of Ncert Solutions For Class 10th History Chapter 3 Eng labour. Rinderpest, a devastating cattle disease, arrived in Africa in the late s. The disease killed 90 percent of the cattle.
The loss of cattle destroyed African livelihoods. They forced Africans into the labour market. In the nineteenth century, hundreds of thousands of Indian and Chinese labourers went to work on plantations in mines and in road and railway construction projects around the world. With industrialization, British cotton manufacture began to expand. This caused decline in the inflow of fine Indian cotton. From the early nineteenth century, British manufacturers also began to seek overseas markets for their cloth.
Excluded from the British markets by tariff barriers, Indian textiles now faced stiff competition in other international markets. On the one hand, exports of Indian cotton Ncert Solutions Class 10th History Chapter 7 Java textiles declined rapidly while on the other hand, export of raw materials increased at fast pace. Over the nineteenth century, British manufacturers flooded the Indian markets.
Food grain and raw material exports from India to Britain and the rest of the world increased. But the value of British export to India was much higher than the value of British imports from India. Britain used this surplus to balance its trade deficits with other countries. By helping Britain balance its deficits, India played a crucial role in the late nineteenth-century world economy. During the First World War, the world experienced widespread economic and political instability. Post-war economic recovery was a difficult task.
The US, however, recovered quickly. The war helped boost the US economy. One important feature of the US economy of the s was mass production. Henry Ford, a pioneer of mass production recovered the high wages by repeatedly speeding up the production line and forcing workers to work even harder.
Car production in the US rose which improved its economy. The Great Depression s had terrifying effects on the world economy. Production, employment, incomes, trade-all declined catastrophically. Agricultural regions and communities were worst affected. Several factors were responsible for the Great Depression. Agricultural overproduction and withdrawal of US loans were major factors. The Indian Class 10th Ncert History Chapter 2 Java economy was also affected badly. Animated Video Class 6 TO 8.
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