1. Why did European nations need to find new colonies in the late nineteenth century?

they needed new territories in the competition for the dominant position in the world. At that time social Darwinism effectively invaded European political thought so there was a faith that certain peoples are superior to others. Example of that can be so-called Scramble for Africa (partition of Africa between 1881 and 1914).

Explanation: Europeans considered themselves superior to Africans, Asians of Latino´s and believed that the dominant role of certain peoples was simply a law of nature. The same logic existed in Europe itself. New colonies could help significantly to the dominant position in the world.

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b)

it created free trade throughout the colonial territories.