How was mercantilism connected to colonization?

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2026-03-15 03:30

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Mercantilism was an economic theory that emphasized the importance of accumulating wealth, primarily gold and silver, through a positive balance of trade. This led European powers to establish colonies to exploit Natural Resources and create markets for their goods, ensuring that wealth flowed back to the mother country. Colonies were viewed as vital assets in enhancing national power and economic stability, driving the expansion of empires during the Age of Exploration. Consequently, mercantilism directly fueled colonization efforts, as nations sought to control and maximize the economic potential of their territories.

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