What role did international trade play in Britain’s industrialisation? Was this trade essential
for Britain to industrialise?
From the mid-18th century, there was a significant development in the UK’s manufacturing
industry. This essay will debate the significance of international trade in Britain’s
industrialisation.
Preceding the period of industrialisation, there was significant increase in international
trade, especially due to the growth of the British empire. This led to many new goods being
brought to the UK such as Chinese porcelain and Indian cotton cloth. Due to their high
demand, British firms attempted to imitate them [Allen, R (2017), The Industrial Revolution:
A Very Short Introduction p.35]. In the 18th century import restrictions were imposed on
cotton goods produced in India, which had the unintentional impact of protecting British
manufacturers from Indian competition [Allen, R (2017), The Industrial Revolution: A Very
Short Introduction p.36]. The diagram below shows how import restrictions result in
increased domestic demand for a good, and thus leads to greater production. The British
porcelain industry was also significantly developed in the mid-18th century [Allen, R (2017),
The Industrial Revolution: A Very Short Introduction p.51]. These are examples of how trade
led to increased production in Britain and thus the industrialisation. However, it would be
inaccurate to suggest the development of the cotton and ceramic industries was due to
trade alone. Although it was the foreign imports which led to the infancy of these industries,
they would not have developed to such an extent without technological advancements. For
example it was Britain’s ability to mechanise the processes of spinning, weaving and
finishing cotton which led to such a large increase in production [Allen, R (2017), The
Industrial Revolution: A Very Short Introduction p.37]. Furthermore, it was the innovations
of the likes of Josiah Wedgwood that enabled the large growth of the ceramic industry in
Britain [Allen, R (2017), The Industrial Revolution: A Very Short Introduction p.53].
A more significant factor in causing industrialisation could be argued to be the agricultural
revolution. In the 17th and early 18th century there was a significant increase in the
productivity of the agricultural sector. “In 1500 each person in agriculture supported him- or
herself plus about one-third of a person off the farm. By 1750, one agricultural person
supported him- or herself plus one and one-fifth in rural industry or the cities” [Allen, R
(2017), The Industrial Revolution: A Very Short Introduction p.24]. This increased
productivity meant that there did not need to be as many workers in agriculture, allowing
labour to move to cities. This meant there was more (and cheaper) labour available for the
manufacturing industries, resulting in growth and thus industrialisation. As labour is a factor
of production, the increased labour in the manufacturing industries due to the agricultural
revolution is arguably more influential than trade. However, it could be argued that the
agricultural revolution was an effect of the growth of Britain’s empire as opposed to a
cause. This is because as London and other cities grew, this increased the demand for food
and labour. As a result, farmers increased production. Since there was now less labour in
rural areas, farm sizes increased and land was converted into pasture which increased
productivity [Allen, R (2017), The Industrial Revolution: A Very Short Introduction p.24-25].
As a result, the significance of the agricultural revolution is also limited.
An additional factor that contributed to Britain’s industrialisation is the coal revolution.
Following large scale house construction in 17th century London, coal became a viable
cheaper alternative to wood. This gave Britain access to some of the cheapest energy in the
world. In the 18th century, the price of energy per million British thermal units in London
was 11 pence. It cost 19p in Paris and 20p in Beijing [Allen, R (2017), The Industrial
Revolution: A Very Short Introduction p.26]. This was very significant as cheaper energy
decreases the cost of production for firms. This enables firms to increase output as shown
by the outwards shift in aggregate supply, resulting in higher economic output (y1).
Furthermore, consumers benefited since due to the cheaper cost of energy, they had more
disposable income. This would have resulted in increased consumption and thus increased
aggregate demand, resulting in increased output. This impact would have been especially
significant in northern cities such as Newcastle upon Thames, where the price of energy was
1.5 pence per million MBTUs [Allen, R (2017), The Industrial Revolution: A Very Short
Introduction p.26]. The coal revolution’s contribution to Britain’s industrialisation goes
beyond the impacts previously explained of having cheap energy. Conveniently, the coal
mines were close to iron ore deposits. This combination of resources was important in
developing the modern iron industry. Furthermore “the steam engine was developed to
drain coal mines, and the first railed ways were constructed in collieries to bring out the
coal” [Allen, R (2017), The Industrial Revolution: A Very Short Introduction p.26]. This shows
that Britain’s increased coal reserves also led to significant technological advancements
which fuelled the industrial revolution. Therefore, the coal revolution was a very significant
factor causing Britain’s industrialisation.
In conclusion, international trade contributed to Britain’s globalisation by introducing it to
new goods which became commonly manufactured, most notably cotton, which by 1850,
employed one sixth of the manufacturing workforce. However, this was not essential.
“Foreign trade accounted for less than 10 percent of the increase in England’s total product
between 1700 and 1780” [Berg, M (2004), “In pursuit of luxury” p.88]. This shows that
Britain was not heavily reliant on trade and thus this was not the reason for the significant
improvement in British manufacturing industries. Rather, this improvement was due to
technological change and originated from the coal revolution. As mentioned previously, the
coal revolution led to important innovations and also provided cheap energy for firms to be
able to produce on a larger scale.