The primary cause of economic differences among the colonies in New America was the varying geographic and climatic conditions, which influenced the types of agriculture and industries that developed in each region. The Northern colonies focused on trade, shipbuilding, and small-scale farming due to their rocky soil and colder climate, while the Southern colonies relied on plantation agriculture and cash crops like tobacco and cotton, benefiting from fertile land and a warmer climate. Additionally, the presence of resources, such as timber in the North and fertile fields in the South, further shaped their distinct economic activities. These regional specializations created diverse economic systems that contributed to the growing differences among the colonies.