Question

______________ is a predominant economic philosophy based on the idea that colonies existed for the benefit of the mother country.

• A. Feudalism
• B. Mercantilism
• C. Capitalism
• D. None of the above

Answer 1

Answer:

B. Mercantilism

• Mercantilism is a predominant economic philosophy based on the idea that colonies existed for the benefit of the mother country. This economic theory dominated European economic policy from the 16th to late 18th centuries.

• Key features of mercantilism include:

1. Colonial exploitation: Colonies were established primarily to produce raw materials (like grain, sugar, tobacco, cotton, etc.) for the mother country, which would otherwise have to be imported from other nations.

2. Trade balance focus: Mercantilists believed that national wealth depended on maintaining a positive balance of trade (exporting more than importing) to accumulate precious metals.

3. Colonial markets: Colonies served as captive markets for the mother country's manufactured goods, which increased jobs and industrial development in the home country.

4. Trade restrictions: Colonial powers often imposed restrictions preventing colonies from trading directly with other nations, forcing them to route trade through the mother country.

5. Navigation acts: Laws were created to ensure shipping and trade remained in the hands of the mother country.