What was the British mercantilist policy?

What was the British mercantilist policy?

Mercantilism, an economic policy designed to increase a nation’s wealth through exports, thrived in Great Britain between the 16th and 18th centuries. Because of this heavy reliance on its colonies, Great Britain imposed restrictions on how its colonies could spend their money or distribute assets.

What role did the colonies play in the British mercantilist system?

Under mercantilism, colonies were important because they produced raw materials for the mother country, goods that the country would have to import otherwise (things like grain, sugar, or tobacco). The British began regulating colonial trade to maximize profits under the mercantilist system in the 1660s.

How did mercantilism affect the colonies?

How did mercantilism affect the Colonies? Americans provided raw goods to Britain, and Britain used the raw goods that were sold in European markets and back to the colonies. The colonies could not compete with Britain in manufacturing. The more the colonies export, the more wealth and power Britain has.

What did the proclamation make illegal for the colonists?

The Proclamation of 1763 made it illegal for colonists to settle in land west of the Appalachian Mountains. The Proclamation, however, did not sit well with colonists, who greatly desired to expand west across the continent.

What purpose did colonies serve?

According to mercantilist theory, colonies had one purpose: to generate revenue for the mother country. One way this could be accomplished was through extracting cheap raw materials from the colonies. These included silver and gold, furs, and timber as well as cash crops—particularly sugar and tobacco.

What were the richest colonies?

Among the mainland colonies, the white southerners were the richest, on average, with about twice the wealth of New England or the Middle Atlantic region. If we include the West Indies as one of the colonial areas, then its thriving sugar industry made it the wealthiest.