What economic doctrine held that colonies existed for the benefit of the mother country?

What economic doctrine held that colonies existed for the benefit of the mother country?

• A. Socialism
• B. Capitalism
• C. Mercantilism
• D. Communism

Answer: (C)

Colonies existed to enrich the mother country, a hallmark of mercantilism. This doctrine argues that national wealth comes from accumulating precious metals and achieving a favorable balance of trade, which meant keeping colonial economies tied to the home country: obtaining raw materials from colonies and selling manufactured goods back to them, all under government regulation. European powers used mercantilist policies to strengthen their states and outpace rivals, making colonies valuable chiefly as sources of resources and markets for the home country’s goods. Socialism, capitalism, and communism describe different approaches to ownership and economic organization and do not hinge on the idea of colonies existing primarily to benefit another country.

Colonies existed to enrich the mother country, a hallmark of mercantilism. This doctrine argues that national wealth comes from accumulating precious metals and achieving a favorable balance of trade, which meant keeping colonial economies tied to the home country: obtaining raw materials from colonies and selling manufactured goods back to them, all under government regulation. European powers used mercantilist policies to strengthen their states and outpace rivals, making colonies valuable chiefly as sources of resources and markets for the home country’s goods.

Socialism, capitalism, and communism describe different approaches to ownership and economic organization and do not hinge on the idea of colonies existing primarily to benefit another country.