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| 1. |
How did the Britain use trade surplus with India ? |
| Answer» (i) In 19th century British manufactures flooded Indian markets.(ii) The value of British exports to India was much higher than the value of British imports from India.(iii) Britain thus had a tradeturplus with India. Britain used this surplus to balance its trade deficits with other countries, that is with countries from which Britain was importing more than it was selling to. | |