USA HISTORY

Detailed explanation-1: -The British capitalized on the abundance of resources provided by the colonies they had established in the “New World.” Mercantilism, an economic theory that encourages trade to build wealth, was one of the leading factors of making the colonial economy profitable and building wealth for the British.

Detailed explanation-2: -These companies pursued the economic opportunities afforded by the natural resources abundant in this “New World.” The economy in the colonies, which varied regionally, was mostly centered around agriculture and exporting materials back to England.

Detailed explanation-3: -The opportunity to make money was one of the primary motivators for the colonization of the New World. The Virginia Company of London established the Jamestown colony to make a profit for its investors. Europe’s period of exploration and colonization was fueled largely by necessity.

Detailed explanation-4: -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-5: -The colonial economy depended on international trade. American ships carried products such as lumber, tobacco, rice, and dried fish to Britain. In turn, the mother country sent textiles, and manufactured goods back to America.