USA HISTORY

Detailed explanation-1: -Under the mercantilism policy, a mother country established colonies in other nations to import cheaper raw materials and export finished products back to them in exchange for gold and silver. In addition to regulating international trade, these countries imposed tariffs, reduced trade deficits.

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 was a popular economic philosophy in the 17th and 18th centuries. In this system, the British colonies were moneymakers for the mother country. The British put restrictions on how their colonies spent their money so that they could control their economies.

Detailed explanation-4: -The mercantile theory held that colonies exist for the economic benefit of the mother country and are useless unless they help to achieve profit. The mother nation should draw raw materials from its possessions and sell them finished goods, with the balance favouring the European country.

Detailed explanation-5: -In the context of the European colonization of North America, mercantilism refers to the idea that colonies existed for the benefit of the Mother Country. In other words, the British saw the American colonists as tenants who ‘paid rent’ by providing materials for Britain to use.