Colonial Empires Questions
Mercantilism is an economic theory and practice that emerged during the colonial era. It is based on the belief that a nation's wealth and power are determined by its accumulation of precious metals, particularly gold and silver. Under mercantilism, colonial economies were seen as a means to enrich the mother country. The colonies were expected to provide raw materials and resources to the mother country, which would then manufacture goods and sell them back to the colonies at a higher price. This system aimed to create a favorable balance of trade for the mother country, with exports exceeding imports. Mercantilism also involved the establishment of colonies as exclusive markets for the mother country's goods, limiting competition from other nations. Overall, mercantilism played a significant role in shaping colonial economies by prioritizing the interests of the mother country and exploiting the resources and labor of the colonies for its own benefit.