Mercantilism

Mercantilism is a system based on the benefits of profitable trading. Countries made trade policies that favored money going from the colonies to the mother country.

Mercantilism moved goods which were abundant in one location to another place where the goods were scarce.

The purpose of the American colonies was to supply raw materials and serve as a market for the finished goods that had been made in England.

Mercantilism stated that colonies had one main purpose: to enrich the mother country.

The idea was that different regions would trade goods that they had a lot of for goods which were rare in their own region. It was referring to trade routes across the Atlantic.

These stated that Colonial exports had to be transported in English ships and that all Colonial imports had to first pass through English ports. Good from American colonies were subject to heavy duties when shipped to England.