Foundations of Commerce and Industry in Britain

Abstract

To understand how and why Great Britain came to be a great trading nation and the first country to make the shift from an agricultural to an industrial economy, one must begin with its position as an island nation. Located some twenty miles off the coast of France and separated from northern Europe by the North Sea, Britain was close enough to be able to take advantage of a huge continental market, but far enough away to evolve in a slightly different pattern. It was not forced to trade just with its immediate neighbors, nor was it restricted by neighbors’ trade restrictions, tolls, or tariffs. From the beginning, when it wanted to communicate with other societies, it had to turn to the sea. Its comparative advantage of location was augmented by seafaring skills. In later years, when local north-south continental trade gave way to long-distance, east-west international trade, British traders were particularly well equipped to take advantage of the new business opportunities.