what is mercantilism and how did it contribute to the development of the colonies
Answers
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.
Mercantilism had many merits. At first, the chief goal of Mercantilism was the prosperity of a country.
Secondly, it brought industrial growth. There was need of surplus for export. The growth of industry led to more production which could meet the demand of the people and create surplus which was exported
Thirdly, this Mercantilism helped the countries to increase foreign relation. When trade increased with foreign countries, commercial and cultural relation also developed.
Fourthly, Mercantilism also helped in the increase of colony. To export surplus, a country needed market. So, the European countries tried to conquer new countries to establish their colony in those places and wanted to gather more and more wealth.
Fifthly, Mercantilism made a country powerful. The merchants became favourite friends of the ruler because they brought more wealth to the country. This wealth helped the king to maintain a large army which was its strength.
Finally, Mercantilism paved the way for new invention. When trade and commerce flourished, more demand was for new goods. It prompted people to invent new things to increase the potentiality of machines which could produce more. The new inventions brought revolutionary change in case of production.