Question

Define mercantilism. How was it beneficial for the European trading companies?​

Answer 1

Answer:

During the European Age of Exploration, the nations of Europe adopted a new economic policy called mercantilism. The theory of mercantilism (shown above) held that a country's power depended mainly on its wealth. Wealth, after all, allowed nations to build strong navies and purchase vital goods.The mother nations of colonies benefited most from mercantilism. This is because the colonial home nations (such as Spain or Britain) used

Answer 2

Explanation:

According to the theory of mercantilism, a nation could increase its wealth and power in two ways. First, it could obtain as much gold and silver as possible. Second, it could establish a favorable balance of trade, in which it sold more goods than it bought.

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