Question

Spain's economy was based on the system of mercantilism, under which...

A) the colonies can trade with anyone they want.

B) the home country became richer by controlling the trade of its colonies.

D) the colonies and the home country operated entirely separate of one another.

Answer 1

Spain's mercantilist economy sought to increase national wealth by controlling colonial trade, enforcing the export of raw materials to Spain, and monopolizing certain trade goods. Colonies were restricted from trading with other nations and were required to import only from the mother country, aimed at achieving a favorable balance of trade.

Step-by-step explanation:

Understanding Mercantilism in Spain's Colonial Economy

Under the mercantilist system, Spain's economy was structured to ensure the enrichment of the motherland through strict control over colonial trade. Colonies served the purpose of providing raw materials and serving as markets for finished goods produced in Spain, creating a favorable balance of trade. This meant that colonial trade was heavily restricted, requiring colonies to export raw materials exclusively to Spain while importing only Spanish-manufactured goods.

Specific policies were put in place to enforce this system. Trade restrictions included limiting colonial trade to specific ports, requiring trade licenses, and maintaining monopolies on certain products. The Spanish government's control was so extensive that it even regulated the trade of silver and mercury, crucial resources for the colonies.

The overarching goal of mercantilism for Spain was to amass wealth in the form of precious metals like gold and silver and to foster national prosperity at the expense of colonial freedoms and economic independence. The colonies were not allowed to trade with other nations or compete on manufacturing, which ultimately benefited the home country's treasure and strengthened its global position.

Answer 2

B. Home country became richer by controlling the trade of its colonies

Step-by-step explanation:

Mercantilism in the 17th and 18th century Europe meant that colonies could only perform trade through their imperial colonizing country. In the case of Spain, this meant that all goods, products, and resources from the colonies had to be sold via Spain or with permission (and therefore payment of high fees) of Spain, making Spain richer.