USA HISTORY

Detailed explanation-1: -Mercantilism is an economic practice by which governments used their economies to augment state power at the expense of other countries. Governments sought to ensure that exports exceeded imports and to accumulate wealth in the form of bullion (mostly gold and silver).

Detailed explanation-2: -Mercantilism was an economic system of trade that spanned the 16th century to the 18th century. Mercantilism was based on the principle that the world’s wealth was static, and consequently, governments had to regulate trade to build their wealth and national power.

Detailed explanation-3: -At the time, mercantilism was the operative economic system in Europe. It is the name given to the economic policy that developed in Europe that equated wealth with power. Governments attempted to export more than they imported, making their balance of trade more favorable, thus increasing their wealth.

Detailed explanation-4: -The mercantile theory held that colonies exist for the economic benefit of the mother country and are useless unless they help to achieve profit. The mother nation should draw raw materials from its possessions and sell them finished goods, with the balance favouring the European country.

Detailed explanation-5: -Mercantilism was a popular economic philosophy in the 17th and 18th centuries. In this system, the British colonies were moneymakers for the mother country. The British put restrictions on how their colonies spent their money so that they could control their economies.