Question

Merchants in the American colonies began smuggling goods because

Answer 1

They smuggled goods into the colonies to avoid paying unfair British taxes. 
The taxation was part of the Sugar Act. This act made them pay taxes on sugar and made it illegal for them to import anything. 

Answer 2

Answer:

They could sometimes get better prices from customers from other countries

Explanation:

I just did it on a quiz and it is garanteeded to be correct.  Also it just makes the most sense.  HoPe dIs hElpZZ.   :-D