ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The way that they kept their economy healthy was through a system called mercantilism. Mercantilism was a popular economic philosophy in the 17th and 18th centuries. In this system, the British colonies were moneymakers for the mother country.

Detailed explanation-2: -Under mercantilism, colonies were important because they produced raw materials for the mother country, goods that the country would have to import otherwise (things like grain, sugar, or tobacco). The colonies also gave the mother country an outlet for exports, which increased jobs and industrial development at home.

Detailed explanation-3: -The colonial economy was a mercantile system, in which Britain controlled the production and trade of colonial goods. Usually, the colonists were only allowed to produce raw materials, which Britain then turned into finished products and sold back to the colonists at a higher price.

Detailed explanation-4: -The laws reflected the economic policy known as mercantilism, which held that colonies exist for the benefit of the mother country as a source of raw materials and a market for its manufactured goods.

Detailed explanation-5: -The Navigation Acts were a series of laws passed by the British Parliament that imposed restrictions on colonial trade. British economic policy was based on mercantilism, which aimed to use the American colonies to bolster British state power and finances.