Question

How did Mercantilism contribute to the sucess of the British Empire?

Answer 1

Mercantilism, economic theory and practice common in Europe from the 16th to the 18th century that promoted governmental regulation of a nation’s economy for the purpose of augmenting state power at the expense of rival national powers.

England was small and contains relatively few natural resources. During Great Britain's mercantilist period, the prevailing economic wisdom suggested that the empire's many colonies could supply raw materials and resources to the mother country and subsequently be used as export markets for the finished products.

The resulting favorable balance of trade was thought to increase national wealth. Great Britain was not alone in this line of thinking. The French, Spanish and Portuguese competed with the British for colonies; it was thought, no great nation could exist and be self-sufficient without colonial resources.

Mercantilism lead to the adoption of enormous trade restrictions, which stunted the growth and freedom of colonial business.

The economic system created stronger economies by marrying the concerns of colonies with those of their founding countries. In theory, when colonists create their own products and obtain others in trade from their founding nation, they remain independent from the influence of hostile nations.

Founding countries benefit from receiving large amounts of raw material from the colonists, necessary for a productive manufacturing sector.