WORLD HISTORY

Detailed explanation-1: -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-2: -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-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: -Mercantilism: Definition Raw goods and natural resources were harvested by colonies and sent to their home country. Goods were sold by manufacturers in an imperial country to merchants. Merchants would then sell these goods in colonies at an inflated price.

Detailed explanation-5: -The goal of mercantilism was to stimulate the economy by keeping colonial trade within England and by exporting more than they imported. The colonies played an essential role in the British mercantilist system through the Navigation Acts of 1651.