WORLD HISTORY

Detailed explanation-1: -Britain used mercantilism as a way to secure its interests in the New World. Raw materials were shipped back to England where they were converted to finished goods. These products were then shipped back to the colonies as exports, which the colonists purchased.

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: -The economy of the United Kingdom (UK) is a highly developed social market economy.

Detailed explanation-4: -The first phase (1757-1813) of ‘mercantilism’ was one of direct plunder in which surplus Indian revenues were used to buy Indian finished goods to be exported to England. In the second phase (1813-1858) of free trade India was converted into a source of raw material and a market for British manufactured goods.

Detailed explanation-5: -Mercantilism was based on the idea that a nation’s wealth and power were best served by increasing exports and reducing imports. It’s characterized by the belief that global wealth was static and that a nation’s economic health relied heavily on its supply of capital.