Question

(Building the Global Economy) How did trade with the colonies help European Countries?

Answer 1

Trade with colonies significantly benefited European countries by supplying cheap raw materials for industrial growth and creating monopolized markets for their manufactured goods. Mercantilist policies implemented through acts like the Navigation Acts guaranteed economic dominance for the European powers. The success in overseas trade also supported sovereign ambitions and contributed to the protection and expansion of their global empires.

Step-by-step explanation:

How Trade with Colonies Benefited European Countries

Trade with the colonies was invaluable for European countries in the age of colonialism, playing a significant role in the mercantilist system. This economic system was adopted by nations such as England and France, who believed that wealth was derived from accumulating precious metals and maintaining a favorable balance of trade. Colonies provided a source of raw materials without the cost of importing from other nations, ensuring a steady flow for the burgeoning industrial growth in Europe. Products like tobacco, lumber, and foodstuffs were obtained at lower prices from the colonies, processed in Europe, and then sold back at higher prices, ultimately swelling the treasuries of colonial powers.

Furthermore, the Navigation Acts legislated by England forced colonies to trade exclusively with the mother country, thereby monopolizing colonial markets and cementing economic dominance. The mercantilist policies not only fueled the European economy but also funded the sovereign ambitions of European rulers by establishing monopolies and trade-related revenues. Additionally, colonists also benefited from protection provided by the Royal Navy against piracy, monopolies over certain crops that could only be grown in the colonies, and lower prices for British imports owing to rebates, illustrating a complex economic relationship that ultimately favored the European powers.

Trade networks facilitated by advances in navigation and military power allowed European nations to build empires and establish a global economy. While Europe's dominance in Asia was limited by powerful Eastern empires, it had considerable success in the Americas and Africa, significantly influencing global politics, colonization, and empire-building for centuries.

Answer 2

European countries sought colonies in the New World to fuel industrial growth and gain economic dominance by establishing a favorable balance of trade.

Step-by-step explanation:

In the mercantilist system, European countries sought New World colonies in the seventeenth century to fuel industrial growth and gain economic dominance. Colonies provided raw materials for domestic consumption and offered a ready market for goods made in the home country. By establishing a favorable balance of trade, Europe's powers like England were able to make profits and increase their treasury.