Final answer:
Taxes were indeed placed on items to reduce competition with Britain through the use of protective tariffs, which aimed to foster domestic industries by making imported goods more expensive for consumers.
Step-by-step explanation:
The statement that taxes had been placed on a number of items to reduce competition with Britain is true. Governments outside Britain, including those in Continental Europe and the United States, implemented protective tariffs on imports to support their own economic development. These tariffs were designed to shelter emerging domestic industries from the overwhelming competition of British goods by making the imported goods more expensive. This strategy aimed to encourage consumers to purchase domestically-produced items, helping to establish these younger industries.
However, while tariffs can initially aid in developing national industries, they may also lead to complacency and inefficiency if industries rely on them indefinitely. If other countries advance industrially, and their goods become cheaper even with tariffs applied, then the protected industries might find themselves unable to compete on an international scale. Additionally, consumers could suffer by having to pay higher prices for these protected goods.
Historical instances like the Townshend Revenue Act of 1767 illustrate how tariffs were used not only for raising revenue but also for controlling trade and competition. The Navigation Act of 1663 is another example, showing how these taxes impacted the economics of the colonies by mandating that non-British goods be taxed in England first, raising their cost to colonial consumers.