Advanced Placement (AP) European History Practice Exam

How did European states respond to competition in overseas markets?

1. They limited their engagements to European territories

2. They sought to dominate foreign markets through colonization

3. They established pacifist policies to avoid conflicts

4. They created alliances exclusively for trade agreements

The correct answer is: They sought to dominate foreign markets through colonization

European states responded to competition in overseas markets by seeking to dominate foreign markets through colonization. During the Age of Exploration, European powers such as Spain, Portugal, England, France, and the Netherlands expanded their empires by establishing colonies in the Americas, Africa, and Asia. This expansion was motivated by the desire for new resources, trade routes, and the accumulation of wealth. Colonization allowed these states to control trade directly and exploit the natural resources of their colonies. It also enabled them to establish profitable trading companies that could monopolize specific goods like sugar, tobacco, and spices. The competition for overseas markets led to intensified rivalries among European powers, often manifesting in conflicts and wars over territorial claims and trade interests. The other possible responses do not accurately reflect the historical actions taken by European states during this period. Limiting engagements to European territories would undermine the economic incentives that drove exploration. Establishing pacifist policies ran counter to the aggressive nature of imperial competition. Additionally, while trade agreements could be established, they were often part of colonial strategies rather than standalone alliances focused exclusively on trade. Thus, the push for colonization was a key response to the competitive landscape of overseas markets.