Question

In: Economics

Analyze and discuss what the English government hoped to gain from establishing colonies and compare that...

Analyze and discuss what the English government hoped to gain from establishing colonies and compare that with what colonists may have hoped to gain from coming to the new colonies

Solutions

Expert Solution

English government hoped to gain below for colonizing the countries or areas.

1 Market to sell its finishes goods.

2 Raw material.

3 Cheap labour.

4 Land to establish factories and plants.

5 Ownership of minerals, i.e. Coal, Metal, Gas reserves, Oil reserves, etc.

6 English government can levy taxes and can charge rent from land owners for the land use.

So English government can easily sell its finished products in its colony and gain from trade and can make their own rules for trade which will favour only English government and also English government can source cheap raw material from its colony and can produce finished product accordingly and can sell in any market including its colony where it will get higher price, for English government was sourcing fine quality raw cotton bales from India and was selling in USA the finished cotton products in 19th century when India was colonized by English government. English government was also getting cheap labour from its colonies and was taking them to USA and other countries where they were in great demand.

English government was also having ownership of large land on which they were establishing factories and also was taxing the native owners of agricultural land and was asking them to pay the taxes in the form of agricultural produce and money.

English government was also getting ownership of mineral reserves of its colony and was fully exploiting them for their benefits and was becoming prosper.

When colonists were acquiring the new colonies they were hoping that they will get new market to sell their products and were getting cheap raw material which was not available in great quantiy in their home country or was not cheaply available and moreover they were able to sell their old colony's finished product in their new colony also as per demand of that product, so new colony was adding profit, growth and prosperity in their home country and their people.


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