Question

Why did mercantilism require European nations to colonize new areas?

To move more Europeans to the colonies to help with overcrowding.

The nations had numerous natural resources, so they established colonies to purchase these resources.

Colonies made it easier to trade with the Indians.

Colonies had no resources of their own so they were dependent on the European nations.

The nations had few natural resources, so they established colonies as a source of raw materials. The materials would flow into the nation, where they would be turned into manufactured products and sold to other nations. The net result would be a financial gain in terms of real money to the parent nation.

Answer 1

The correct answer is the last statement: "The nations had few natural resources, so they established colonies as a source of raw materials. The materials would flow into the nation, where they would be turned into manufactured products and sold to other nations. The net result would be a financial gain in terms of real money to the parent nation."

Mercantilism was a system based on establishing a relationship with colonies where a nation would get cheap raw materials from a colony and sell manufactured products to the same colony and other nations.

Colonies were important also because of metals found in them. A kingdom's wealth was measured in metals, that is, gold and silver. In order to keep these metals nations would keep a positive trade balance, that is, nations should export more than import, exploring colonies to support this system.