Final answer:
Parallel importing is often referred to as grey marketing, which is not listed as an option. The Dutch utilized legitimate trade, piracy, and smuggling to establish their economic presence in the Caribbean. High tariffs and import substitution strategies often led to reduced competition and market inefficiencies.
Step-by-step explanation:
In the context of controlling middlemen, parallel importing is also known as grey marketing or grey importing, though this term is not among the options provided. None of the options listed (secondary wholesaling, black marketing, backwashing, industrial piracy, smuggling) precisely correspond to parallel importing. Instead, parallel importing involves importing goods through channels other than the manufacturer's authorized distributors or agents, which is not illegal but can be discouraged by manufacturers as it bypasses their preferred distribution channels.
The Dutch established themselves as an economic powerhouse in the Caribbean by engaging in all of the above: legitimate trade, piracy, and smuggling. This multi-faceted approach allowed them to compete effectively with other European powers and control trade in exotic luxury goods and vital raw materials. High tariffs and other protectionist measures such as import substitution industrialization often led to reduced competition, resulting in high prices, reduced production, and poor quality of domestically manufactured goods.