Economic Imperialism Practice Test

A West African region in 1905 produced palm oil and cocoa for export. European trading houses offered advances to African middlemen, but required exclusive purchasing contracts and set prices below world market rates. Colonial courts enforced contract disputes in favor of the firms, and railways were built mainly to connect producing zones to ports. Which factor most directly explains why colonial states supported these firms’ practices?

A historian argues that by 1913 Argentina’s economy was “British in its arteries,” noting that British capital financed railways, meatpacking, and utilities; profits flowed to London, and rail lines prioritized export routes over internal integration. Argentina’s government remained independent and encouraged foreign investment to modernize. Which interpretation best supports labeling this as economic imperialism rather than traditional colonialism?