USA HISTORY

Detailed explanation-1: -Raw materials like precious metals (gold and silver), tobacco, sugar and cotton went from the Americas to Europe. Manufactured goods like cloth and metal items went to Africa and the Americas.

Detailed explanation-2: -Developed in the sixteenth century, mercantilism was one of the earliest efforts to develop an economic theory. This theory stated that a country’s wealth was determined by the amount of its gold and silver holdings.

Detailed explanation-3: -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-4: -The policy of Mercantilism favored England because the raw materials (wood, cotton, etc.) from the colonies were used to make different products in England-‐ finished goods have a higher value than raw materials.