Question

The distinctive phase of flow of finance capital to colonies is known as :

• A. Colonialism
• B. Mercantilism
• C. Imperialism
• D. Feudalism

Answer 1

Answer:

C. Imperialism

World in the 20th century

• The economic system in which production and distribution are controlled by the capitalists with the aim to increase profit is known as Capitalism

• Many nations produced more than they needed and more than they could accommodate in their domestic markets. This over-production forced them to search for markets.

• The Europeans had already established trade relationship with Asian, African and Latin American nations.

• Using political power and military forces, the European countries economically exploited these nations. Later, they became the colonies of European countries. This process is called Colonization

• The distinctive phase of flow of finance capital to colonies is known as Imperialism.

• Imposing a nation's political, economic and cultural dominance on another nation is a fundamental feature of imperialism