Final answer:
England needed colonies under mercantilism to supply raw materials at a low cost, which were transformed into goods and sold back at higher prices, ensuring a favorable balance of trade. The Navigation Acts restricted trade to British ships, benefiting British merchants and industries.
Step-by-step explanation:
Under the economic theory of mercantilism, England established colonies to create a system benefitting the mother country both materially and financially. Colonies were essential in supplying raw materials cost-effectively, which England used to produce goods.
These manufactured goods would then be sold back to the colonies at higher prices, ensuring a favorable balance of trade. This trade model allowed England to increase its wealth in gold and silver, reflecting the country's power and success under mercantilism.
To further this goal, England passed the Navigation Acts, restricting colonial trade to British ships, thus monopolizing trade with its colonies. The system also stimulated the growth of British industry by ensuring a steady supply of raw materials, such as tobacco, timber, and cotton. Meanwhile, the colonies provided markets for British manufactured goods, fulfilling mercantilism's dual aims of raw material acquisition and guaranteed markets for finished products.