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England required the colonies to supply England with natural resources and raw materials and buy finished products from England.

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Q: How did the american colonies fit into the mercantilism system?
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HttpwikianswerscomQWhat was the new economic idea that emerged in Europe and how did colonies fit into this theory?

It was called the Mercantile System. The Navigation Acts were an attempt to put the theory of Mercantilism into practice in the British colonies. The object of mercantilism was to minimize imports that cost the nation money, and maximize exports that made the nation money. Colonies were a means of reducing England's dependence on foreign nations. Each colony would provide a raw material to England and this would allow the nation to not have to purchase that product from another nation. By establishing colonies loyal to the Crown, Great Britain would be expanding a dependable market for the finished products coming out of British industries. The Navigation Acts required that all colonial trade be carried in vessels built and owned by English or colonial merchants. The ships had to be manned by crews composed of British seamen. The Acts also required that European nations must sell products to the colonies by first stoping at English ports where they would have to pay a customs duty (tax). The products were checked and then were permitted to travel to the colonies.


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What role did colonies play in the mercantilist economic system?

Mercantilism is an economic system that was arranged and became prevalent in European society in the 17th and 18th centuries. The system endorsed the use of a monopoly to control access to and from markets such as the East India Companies set up by the British and Dutch or VOC (French). These companies would hold a monopoly over the trade to a licensed area and the coloneis fit into the theory as a market for the goods developed in the home country to be exported outward and also for raw materials to be fed from the colonial possessions back to the home country for production.


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