Explain the three-way trade system that developed after the British Empire took over India. ( 6 points) No three-way trade system developed after the British Empire took over India. The British Empire bought rice from China. In exchange, it sold China opium and cotton the empire had taken from India. The British Empire bought tea from China. In exchange, it sold China opium and cotton the empire had taken from India. The British Empire bought opium and cotton from China. In exchange, it sold China tea the empire had taken from India.

The correct explanation of the three-way trade system that developed after the British Empire took over India is: **The British Empire bought tea from China. In exchange, it sold China opium and cotton the empire had taken from India.** **Explanation:** 1. **Tea Importation:** The British had a high demand for Chinese tea, which became a staple in Britain. 2. **Opium Exportation:** To balance the trade deficit caused by expensive tea imports, the British began exporting opium grown in India to China. 3. **Impact on China:** The influx of opium led to widespread addiction in China, creating significant social and economic issues. 4. **Economic Balance:** The sale of opium provided Britain with the necessary silver to purchase more tea and other Chinese goods, stabilizing the trade balance. 5. **Cotton Trade:** Additionally, cotton produced in India was exported to China, further strengthening the trade relationships. 6. **Resulting Conflicts:** The opium trade eventually led to the Opium Wars between Britain and China, highlighting the tensions arising from this trade system. This three-way trade was pivotal in establishing British economic dominance in the region but had profound negative consequences for China.