Final answer:
Mercantilism was an economic policy whereby England increased its wealth by promoting domestic manufacturing, enforcing trading monopolies, and accumulating precious metals through favorable trade balances.
Step-by-step explanation:
The state-assisted manufacturing and trade practiced by England in the sixteenth century, known as mercantilism, was an economic system designed to increase a nation's wealth at the expense of its competitors. Mercantilism involved accumulating gold and silver, achieving a favorable trade balance, and increasing a country's population and shipping capabilities. This was achieved by encouraging domestic manufacturing and establishing monopolies, such as the Navigation Acts, which were laws that limited colonies from trading with countries other than England. These acts ensured that raw materials from the colonies were processed in Britain and finished goods were sold back to the colonies, thus retaining wealth within the empire. Alongside promoting manufacturing, mercantilism led to the establishment of restrictive practices such as bans on certain goods, high tariffs, and exclusivity requirements. Collectively, these practices aimed to strengthen the British merchant marine and navy while increasing the mother country's prosperity.