Question

British trade policy toward its American colonies was based on what economic theory?

A. British trade policy toward its American colonies was based on Laissez-faire economics.
B. British trade policy toward its American colonies was based on the economic theory of Communism.
C. British trade policy toward its American colonies was based on the economic theory of Free Trade.
D. British trade policy toward its American colonies was based on the economic theory of Protectionism.

Answer 1

British trade policy toward its American colonies was based on the economic theory of Mercantilism.

Step-by-step explanation:

British trade policy toward its American colonies was based on the economic theory of Mercantilism.

Mercantilism was a system in which the colonies existed to increase the wealth of the mother country. The British government implemented policies, such as the Navigation Acts, to regulate colonial trade and tie the colonies to the mother country. These policies required the colonies to trade only with Britain and provide raw materials for British industry.

Through this system, Britain aimed to increase its economic power and maintain control over its colonial empire.