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information on profits and risks of various investment types, provided …

Question

information on profits and risks of various investment types, provided by english commercial banks and other private lenders to prospective investors, 1750 to 1800

investment opportunityexpected rates of return or rates of interest (charged (per year or per voyage))
lending to commercial enterprises in great britain6-12% per year
land in india12% per year
lending to european merchants in india or china10-15% per year
lending to indians or chinese merchants in india or china14-70%, new areas

an increase in the number of overseas investment opportunities such as those shown in the table in the nineteenth century most strongly contributed to which of the following processes?
a. global migration to metropoles from asia and africa, as western businesses recruited financial experts
b. economic imperialism in asia and latin america, as western individuals and businesses pressured their governments to protect their investments
c. an expansion of artisan manufacturing in latin america and africa, as traditional local businesses were revived through western investment
d. a broad improvement in living standards in western societies, as the working classes were

Explanation:

Brief Explanations

The table shows that Western private lenders offered far higher returns for overseas colonial/imperial investments (e.g., 10-15% for India/China trade, 12% for Indian land) compared to domestic British investments. This profit incentive drove Western individuals and businesses to push their governments for imperial expansion and protection of these high-yield overseas investments, which is core to economic imperialism in Asia and beyond.

Answer:

B. Economic imperialism in Asia and Latin America, as Western individuals and businesses pressured their governments to protect their investments