Question

What is meant by ‘Triangular Trade’? What led to its development?

Answer 1

Hint: The buying and selling of commodities and services, with compensation provided by a buyer to a seller, or the exchange of goods and services between parties, is a basic economic notion. Between producers and consumers, trade can take place inside an economy.

Complete answer:
Triangle commerce is a historical word that refers to trade between three ports or areas. When a region possesses export items that aren't needed in the region from which its major imports come, triangular trade develops.

From the 17th century through the early 19th century, the triangle trade, sometimes known as the triangular trade, was a system of Atlantic trading routes. The triangle trade was named from the fact that it took place across the Atlantic Ocean between three different regions. Slaves, manufactured products, and cash crops were transported between West Africa, North America, and Europe via these trading routes.

Enslaved Africans were a vital part of the economies of both the American continent and the Caribbean islands. Slaves in the Americas grew and harvested cash commodities like tobacco, hemp, and sugar, which were subsequently sent to Europe. Sugar, for example, was distilled into rum throughout Europe, usually in the liquid form known as molasses.

Some of the rum was brought to West Africa and sold, while others were swapped for slaves. The infamous "middle passage" was the third leg of the triangle, which was used to transport slaves across the Atlantic.

Note: Trade has the potential to be a major driver of economic growth. The wise use of trade may help a country flourish while also providing absolute benefits to the trading partners. Leading economists have praised trade as a key instrument in the development process.