USA HISTORY

Detailed explanation-1: -Mercantilism was meant to serve the interests of the empire, not the colony. Colonies existed for the benefit of the mother country. Colonies could not sell their raw materials to anyone but the mother country England, and they were not allowed to manufacture anything to export.

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: -Mercantilism held that wealth was fixed and finite. The only way to prosper was to hoard gold and place tariffs on products from abroad. According to this theory, nations should sell their goods to other countries while buying nothing in return.

Detailed explanation-4: -Mercantilism is economic nationalism for the purpose of building a wealthy and powerful state. Adam Smith coined the term “mercantile system” to describe the system of political economy that sought to enrich the country by restraining imports and encouraging exports.