<span>In the mid-17th
century of Britain, the Navigation Acts was established. These acts was made
mainly for safeguarding English shipping, and ensuring profit from the colonies.
The British Government added many taxes such as Tea Act, Quartering Act, Stamp
Act, etc. without allowing the participation of the Thirteen colonies. The Loyalist
Point of View was that the British government needed funds and to get these funds,
Britain must acquire it from international sales coming from the Thirteen
colonies. The will buy as many goods as they can so that when war comes, the colonies will have
lots of money instead of goods, this idea made the colonies furious. The Patriotist
point of view that all Thirteen colony goods must only be purchased from the
Britain even if the goods were expensive.</span>
Answer:
Trade increases competition and lowers world prices, which provides benefits to consumers by raising the purchasing power of their own income, and leads a rise in consumer surplus. Trade also breaks down domestic monopolies, which face competition from more efficient foreign firms.
