
The British policy of free trade was designed to----the British industrialists.
A. Promote
B. Fight
C. Remove
D. None of these
Answer
545.7k+ views
Hint:- Free trade is also called laissez-faire.
Under this policy, a government doesn't discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports).
Historians believe that in the 1840s, Britain adopted a free-trade policy, which means opening markets and no tariffs or tax throughout the empire in India for the import of British manufactured goods.
Complete answer:
The British policy of free trade was designed to promote British industrialists. So A is the right answer.
The reason why the British practice free trade policy within India was that it was conspicuous (in 1813) that the cotton and silk goods of India, up to this period, could be sold for a profit within the British market at a price from 50 to 60% lower than those fabricated in England. It consequently became necessary to guard the latter by duties of 70 or 80 percent. By this policy, Britain retained its monopoly control and ruled over India’s imports and exports, and half of India’s foreign trade was only authorized to Britain. India became the Net exporter of staple and importer of finished goods which resulted in the Drain of Indian wealth took place during British rule, India became an exporter of primary products (raw material) like raw silk, cotton, wool, sugar, indigo, jute, etc. India became an importer of finished commodities like cotton, silk, and woolen clothes and capital goods like light machinery produced within the factories of England.
Hence, answer A is the right option.
Note: Due to Free Trade policy, Foreign trade of India generated a surplus export thanks to excess exports. However, this surplus export didn't flow any silver or gold into India.
Rather, this surplus export was utilized to form payments for:
The costs made for the office were found out by the colonial government in Britain.
Expenses on the war fought by the British government.
Import of invisible items etc.
These causes led to the drain of Indian wealth.
Due to this policy, India became an exporter of raw materials and an importer of finished goods.
Thus, this was the result of the Free Trade policy imposed on India by Britishers.
Under this policy, a government doesn't discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports).
Historians believe that in the 1840s, Britain adopted a free-trade policy, which means opening markets and no tariffs or tax throughout the empire in India for the import of British manufactured goods.
Complete answer:
The British policy of free trade was designed to promote British industrialists. So A is the right answer.
The reason why the British practice free trade policy within India was that it was conspicuous (in 1813) that the cotton and silk goods of India, up to this period, could be sold for a profit within the British market at a price from 50 to 60% lower than those fabricated in England. It consequently became necessary to guard the latter by duties of 70 or 80 percent. By this policy, Britain retained its monopoly control and ruled over India’s imports and exports, and half of India’s foreign trade was only authorized to Britain. India became the Net exporter of staple and importer of finished goods which resulted in the Drain of Indian wealth took place during British rule, India became an exporter of primary products (raw material) like raw silk, cotton, wool, sugar, indigo, jute, etc. India became an importer of finished commodities like cotton, silk, and woolen clothes and capital goods like light machinery produced within the factories of England.
Hence, answer A is the right option.
Note: Due to Free Trade policy, Foreign trade of India generated a surplus export thanks to excess exports. However, this surplus export didn't flow any silver or gold into India.
Rather, this surplus export was utilized to form payments for:
The costs made for the office were found out by the colonial government in Britain.
Expenses on the war fought by the British government.
Import of invisible items etc.
These causes led to the drain of Indian wealth.
Due to this policy, India became an exporter of raw materials and an importer of finished goods.
Thus, this was the result of the Free Trade policy imposed on India by Britishers.
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