Final answer:
Mercantilist theory drove European states to establish colonies in order to achieve economic domination. Colonies provided raw materials and a ready market for goods made in the home country.
Step-by-step explanation:
During the sixteenth and seventeenth centuries, European states embraced mercantilist theory, which drove the establishment of colonies. Mercantilists believed that a colonial empire was necessary for economic domination. Colonies provided raw materials for domestic consumption, eliminating the need to purchase resources from other countries. Additionally, colonial populations served as a ready market for goods made in the home country. European countries that established colonies usually required them to trade only with the home country, ensuring that colonies added to their national wealth.