USA HISTORY

Detailed explanation-1: -The British colonies were subject to the direct and indirect effects of mercantilist policy at home. Here are several examples: Controlled production and trade: Mercantilism led to the adoption of far-reaching trade restrictions, which stunted the growth and freedom of colonial businesses.

Detailed explanation-2: -As such, mercantilism became the key economic model of the time. It encouraged the colonists to purchase goods from England rather than rival nations. The colonies sent raw materials to England where they were manufactured into finished products and sold to the colonists.

Detailed explanation-3: -What were the effects of mercantilism? Mercantilism led to the creation of monopolistic trading companies, such as the East India Company and the French East India Company. Restrictions on where finished goods could be purchased led in many cases to burdensome high prices for those goods.

Detailed explanation-4: -Mercantilism and Colonialism Under mercantilism, nations sought to establish colonies to produce goods over which the home economy had monopolistic control. Mercantilists believed that colonies existed not for the benefit of settlers, but for the benefit of the imperial centre.