Mercantilism

by inhibiting the development of banking and paper currency in the colonies

England used a plan known as mercantilism to keep it rich and strong. According to this plan, a country becomes rich by selling more goods to other countries than it buys from them, England applied this plan to the American colonies.

In other words, Britain attempted to become more prosperous by selling more goods to the colonies than buying from them. Essentially, Britain forbade the colonies to buy from any other country to ensure their profits.

export more goods than are imported

provide England with necessary raw materials so that they can sell back the materials in the form of a product for more money, which made England richer

The actions of the British such as the Acts of Trade and Navigation which only allowed the colonies trade with England caused resentment from the colonists towards the mother country England and heightened tensions between the two. Heavier taxes started being imposed after the French and Indian War in order to help out the English economy.

To have "mother" countries serve as a source of raw materials and the colonies as a source of manufactured goods.

Mercantilism - an economic system whereby countries take actions to maintain the largest possible gold reserves by minimizing imports, maximizing exports, and developing colonies and maintaining a favorable balance of trade

Trans-Atlantic Trade - Colonists involvement in trade helped the colonies became very profitable.

"Do you want to be a mercantilist?"

Yes, the Mercantilism was a success in Europe. It was however not beneficial. It was characterized by protectionism and capital controls.

Mercantilism existed during the16th century. It means that riches is the basic power or it is the basis of a power of one's country

The theory of mercantilism is economic philosophy underlying early European colonial policy. This is to increase the wealth of the metropole (mother country). In mercantilism, the colonies were required to engage in two general behaviors: (1) The colonies were locked into exclusive trade between the colonies and the metropole and were not allowed to trade with any other nation or colony. (2) No manufactures or complex goods could be made in the colonial territory. As a result the colonies would provide wealth to the metropole by trading their natural resources for less than they would be worth and by buying manufactures for much more money.

Mercantilism is the economic policy that a metropole should have a number of colonies that provide it material wealth, unrefined resources, and a market for its goods. As a result, according to mercantilism, the colonies were required to engage in two general behaviors: (1) The colonies were locked into exclusive trade between the colonies and the metropole and were not allowed to trade with any other nation or colony. (2) No manufactures or complex goods could be made in the colonial territory. As a result the colonies would provide wealth to the metropole by trading their natural resources for less than they would be worth and by buying manufactures for much more money.

In addition to the moneys that would come into Spain through the production of manufactures that would be sold to the colonies, the raw materials coming from the colonies were often very valuable in and of themselves. Vast amounts of gold and silver were mined from Mexico to Bolivia.

To give England most of the profit from trade with the colonies.

Answer
Mercantilism is an economic system that requires two distinct political entities to exist. It requires a metropole, which is the main part of the country and where the leadership sits. It also requires colonies, which are distant regions with unique resources that can transfer these unique resources to the metropole.

In order to create this kind of relationship, leaders from the metropole must create colonies in distant lands in order to extract these resources. This is why mercantilism necessarily leads to colonialism. Note that this form of colonialism can exist within large empires as well. The Russian expansion into Siberia and Central Asia in the 1700s and 1800s mirrors the Western European creation of colonies in the Americas and this expansion was done with the purpose of extracting raw materials that were present in these territories.

Further Elaboration on the Metropole-Colony Relationship
Mercantilism is the economic policy that a metropole should have a number of colonies that provide it material wealth, unrefined resources, and a market for its goods. As a result, according to mercantilism, the colonies were required to engage in two general behaviors: (1) The colonies were locked into exclusive trade between the colonies and the metropole and were not allowed to trade with any other nation or colony. (2) No manufactures or complex goods could be made in the colonial territory. As a result the colonies would provide wealth to the metropole by trading their natural resources for less than they would be worth and by buying manufactures for much more money.

The main purpose of England's mercantilist policy was to maximize profits through monopoly within colonies. American colonies were exploited by England for their raw materials, which were shipped to England for processing and sold back to other colonies at a significant mark up.

Britain applied for the policy of mercantilism to its American colonies through the Navigation Acts. It led to inflation and alienation in the colonies.

A feature of mercantilism is full government control of the national economy. This theory believes that this is the only way of achieving a healthy economy.

Tariffs increased the price of imported goods

It could gain wealth because Empires are so stupid they give out money. They basically gain wealth STUPIDITY!!! THEY GAIN WEALTH BECAUSE THEY JUST DO!!! LOL!

Mercantilism is a dated economic system that had its heyday in the 18th century in Europe. The goal of installing any particular economic system is to gain prosperity, however, all economic systems can, to some extent, fail to accomplish their goals. The extent of such failures can be either long or short term.

In the case of mercantilism, the goal was indeed prosperity and the idea of using it was much like this for any particular nation:

A. Attract precious metals such as gold and silver to the nation's treasury. These metals are standards by which many economists deem to be measures of wealth;

B. Create an imbalance of trade whereby a nation exports more than it imports;

C. Receive payments in the imbalance in the form of gold & silver;

D. Continue this imbalance by increasing exports, even to the extent of subsidizing companies to continue their production of exportable goods;

E. Raise tariffs to reduce imports. This may not reduce imports if the market is willing to pay the extra cost of goods, however, it will certainly have an overall affect of doing so;

G. Imperialism. Yes, one of the reasons besides accumulating power & creating sphere's of influence is part & parcel with mercantilism. By creating colonies, an export market is created along with being able to acquire raw materials at a reduced price to aid manufacturing; and

H. Create laws that forbid the colonies from trading with other countries. Have the colonies only trade with the founding nation.

This entire economic system was intended to therefore benefit the home country and their colonies.

As an aside, planned economies and trade restrictions eventually fall apart.

To increase the nation's (great Britain's) total wealth

Controlling trade is a key to increasing power.

Mercantilism is the belief that colonies exist for the benefit of the mother country.

To maintain the largest margin of wealth possible.