WORLD 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 is an economic policy designed to increase a nation’s wealth through exports, which thrived in Great Britain between the 16th and 18th centuries.

Detailed explanation-4: -Which countries practiced mercantilism? The primary countries that employed mercantilism were of western Europe-France, Spain, Portugal, Italy, and Britain, as well as Germany and the Netherlands.

Detailed explanation-5: -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.