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Q.

Britain benefited from the trade surplus it had with[[1]].


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Detailed Solution

Britain benefited from the trade surplus it had with India. The so-called "home charges" were partially paid for by Britain's trade surplus with India. There is a trade surplus when imports are higher in value than exports. British producers dominated the Indian market in the 19th century as food, grain, and raw material exports from India to Britain and the rest of the globe rose. India's imports were less expensive than Britain's exports to India. Britain amassed a "trade surplus" with India to offset its economic deficit with other nations. This arrangement, commonly referred to as a multilateral settlement system, enables one country's deficit with another to be made up by another country's surplus.
 
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