Final answer:
England discouraged the development of manufacturing in New England due to the fear of competition for English markets and the focus on fishing and lumber resources. By monopolizing the colonies' markets, England could profit from the trade imbalance.
Step-by-step explanation:
England discouraged the development of manufacturing in New England primarily due to the fear of competition for English markets. Under the mercantilist system, England sought to extract raw materials from its colonies and then manufacture goods to sell back to them. By discouraging manufacturing in the colonies, England ensured that it had a monopoly over their markets and could profit from the trade imbalance. Additionally, New England's focus on fishing and lumber production made it more valuable to England for those resources rather than for manufacturing.