History The Age Of Colonization Questions
Mercantilism was an economic theory and practice that dominated European countries during the Age of Colonization. It emphasized the accumulation of wealth and the belief that a nation's economic strength was measured by the amount of gold and silver it possessed. The main goal of mercantilism was to achieve a favorable balance of trade, where a country exported more goods than it imported.
In the context of colonization, mercantilism played a significant role. European powers established colonies in order to secure valuable resources and establish markets for their manufactured goods. These colonies were seen as sources of raw materials, such as tobacco, sugar, and cotton, which could be exported back to the mother country. The colonies were also expected to serve as captive markets for the manufactured goods produced by the colonizing nation.
Mercantilism led to the establishment of strict trade regulations and monopolies, such as the Navigation Acts imposed by Britain, which aimed to control colonial trade and ensure that the colonies only traded with the mother country. This system allowed the colonizing nations to accumulate wealth and maintain economic dominance over their colonies.
Overall, mercantilism played a crucial role in colonization by providing the economic framework and motivation for European powers to establish and exploit colonies for their own economic benefit.