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IV. The Rise and Fall of the British Empire  (1688-1990);English colonial expansion began with the colonization of Newfoundland in 1583. In the early 18th century, settlements were made in North America. Encouraged by the large quantities of wealth brought by the Industrial Revolution, the discoveries of new frontiers by men like Captain Cook, and especially by the rising tide of emigration, the British colonialists stepped up their expansion in the late 18th century and early 19th century.;In the late 18th century Britain acquired vast, unpopulated territories in Canada, Australia and New Zealand, and in the early and middle of 19th century, it colonized large areas in Asia such as India and China. By 1900, Britain had built up a big empire “on which the sun never set”, which included 25% of the world’s population and area.;At the beginning of the 20th century, France, Germany and America were becoming powerful competitors for world market. The First World War was fought from 1914 to 1918 primarily between two European power blocs: the “Central Powers”—Germany and Austria-Hungary which were later joined by Turkey and Bulgaria, and the “Allies”—Britain, France and Russia, which were later joined by Japan, Italy and the USA. The war lasted for four years, ended by the Treaty of Versailles, imposed on Germany, formalizing the Allied victory.;The great losses of manpower and the disruption of economy during the first world war led Britain into serious social and financial problems. By 1931, Britain was entering the Great Depression which was to give rise to the Second World War. Chamberlain declared war on Germany on September 3, 1939. Winston Churchill, the Prime Minister, led his country to final victory in 1945. ;Due to the two wars, Britain lost one-quarter of her national wealth and entered upon a period of economic and financial difficulties, and her colonies won their independence one after another, which led to the collapse of the Brit