Final answer:
Napoleon's plan to isolate Britain economically, known as the Continental System, involved a blockade prohibiting European trade with Britain in an effort to weaken its economy. The plan faced challenges such as smuggling, noncompliance, and led to military involvement in neutral countries, ultimately failing to crush Britain's economic strength.
Step-by-step explanation:
Napoleon's plan to prevent Britain from trading with continental Europe was known as the Continental System. This economic strategy involved imposing a blockade that prohibited European nations from importing British goods, thereby attempting to weaken Britain's economy. In November 1806, Napoleon launched the Continental System to make Europe self-sufficient and cut off British economic influence. The initial impact of the blockade saw a decline in British exports by over 20%, causing hardships such as rising food prices. However, the system ultimately failed due to widespread smuggling and noncompliance by European nations. Additionally, Britain countered by focusing on colonies and allied nations to compensate for lost European markets. Furthermore, to impose this system, Napoleon demanded compliance from neutral countries like Denmark and Portugal, leading to military conflicts and the eventual invasion of the Iberian Peninsula in 1808, which spiraled into a guerrilla war.