USA HISTORY

Detailed explanation-1: -Some nations needed colonies for raw materials, a labor supply, and a way to keep wealth within its control (by selling colonies the products their raw materials helped to produce). Essentially, colonies increased a nation’s wealth-building power and national security.

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: -Mercantilist economic policies rely on government intervention to restrict imports and protect domestic industries. Modern-day mercantilist policies include tariffs, subsidizing domestic industries, devaluation of currencies, and restrictions on the migration of foreign labor.

Detailed explanation-4: -To keep the profits, Britain tried to keep a greater number of exports than imports. The most important thing for Britain to do, under the theory of mercantilism, was keep its money and not trade with other countries to get necessary items. The colonists’ role was to provide many of these items to the British.