THE FLOW OF TRADETHE FLOW OF TRADE

• Countries buy and sell goods and services from one another constantly.

• The goods mainly transported is corn .• The main reason for the three flow is corn laws .• The country which is responsible for the flows is

the Britain.

Corn lawsCorn laws

The Corn Laws were trade laws designed The Corn Laws were trade laws designed to protect cereal producers in the United to protect cereal producers in the United Kingdom of Great Britain and Ireland Kingdom of Great Britain and Ireland against competition from less expensive against competition from less expensive foreign imports between 1815 and 1846.foreign imports between 1815 and 1846.

A good place to start is the changing A good place to start is the changing pattern of food production and pattern of food production and consumption in industrial Europe.consumption in industrial Europe.

Traditionally, countries liked to be self-Traditionally, countries liked to be self-sufficient in food. But in nineteenth-century sufficient in food. But in nineteenth-century Britain, self-sufficiency in food meant lower Britain, self-sufficiency in food meant lower living standards and social conflict. living standards and social conflict.

Population growth from the late eighteenth Population growth from the late eighteenth century had increased the demand for food century had increased the demand for food grains in Britain.grains in Britain.

As urban centers expanded and industry As urban centers expanded and industry grew, the demand for agricultural products grew, the demand for agricultural products went up, pushing up food grain prices. went up, pushing up food grain prices.

Under pressure from landed groups, the Under pressure from landed groups, the government also restricted the import of corn. government also restricted the import of corn.

Unhappy with high food prices, industrialists Unhappy with high food prices, industrialists and urban dwellers forced the abolition of the and urban dwellers forced the abolition of the Corn LawsCorn Laws.. After the Corn Laws were After the Corn Laws were scrapped, food could be imported into Britain scrapped, food could be imported into Britain more cheaply than it could be produced more cheaply than it could be produced within the country.within the country.

THE FLOW OF TRADETHE FLOW OF TRADE

British agriculture was unable to British agriculture was unable to compete with imports. Vast areas of compete with imports. Vast areas of land were now left uncultivated, and land were now left uncultivated, and thousands of men and women were thousands of men and women were thrown out of work. thrown out of work.

As food prices fell, consumption in As food prices fell, consumption in Britain rose. From the mid nineteenth Britain rose. From the mid nineteenth century, faster industrial growth in century, faster industrial growth in Britain also led to higher incomes, Britain also led to higher incomes, and therefore more food imports. and therefore more food imports.

Around the world – in Eastern Around the world – in Eastern Europe, Russia, America and Europe, Russia, America and Australia – lands were cleared and Australia – lands were cleared and food production expanded to meet food production expanded to meet the British demand. the British demand.

THE FLOW OF LABOURTHE FLOW OF LABOUR

The demand for labor in places where labor The demand for labor in places where labor was in short supply – as in America and was in short supply – as in America and Australia – led to more migration.Australia – led to more migration.

Nearly 50 million people emigrated from Nearly 50 million people emigrated from Europe to America and Australia in theEurope to America and Australia in the

nineteenth century. All over the world some 150 nineteenth century. All over the world some 150 million are estimated to have left their homes, million are estimated to have left their homes, crossed oceans and vast distances over land in crossed oceans and vast distances over land in search of a better future.search of a better future.

Thus by 1890, a global agricultural economy Thus by 1890, a global agricultural economy had taken shape, Activity accompanied by had taken shape, Activity accompanied by complex changes in labor movement patterns, complex changes in labor movement patterns, capital flows, ecologies and technology.capital flows, ecologies and technology.

..

FLOW OF CAPITALFLOW OF CAPITAL

It was not enough merely to clear It was not enough merely to clear lands for agriculture. Railways were lands for agriculture. Railways were needed to link the agricultural needed to link the agricultural regions to the ports. New harbors regions to the ports. New harbors had to be built and old ones had to be built and old ones expanded to ship the new cargoes. expanded to ship the new cargoes.

People had to settle on the lands to People had to settle on the lands to bring them under cultivation. This bring them under cultivation. This meant building homes and meant building homes and settlements. All these activities in settlements. All these activities in turn required capital turn required capital

Capital flowed from financial centers Capital flowed from financial centers such as London. such as London.

THE FLOWS AND ITSTHE FLOWS AND ITS

Due to the flow of trade British agriculture Due to the flow of trade British agriculture was unable to compete with imports. Vast was unable to compete with imports. Vast areas of land were now left uncultivated, areas of land were now left uncultivated, and thousands of men and women were and thousands of men and women were thrown out of work. thrown out of work.

As food prices fell, consumption in Britain As food prices fell, consumption in Britain rose. From the mid nineteenth century, rose. From the mid nineteenth century, faster industrial growth in Britain also led to faster industrial growth in Britain also led to higher incomes, and therefore more food higher incomes, and therefore more food imports.imports.

Due to the flow of labor there will be lack of Due to the flow of labor there will be lack of labor in that region. labor in that region.

EFFECTSEFFECTS