Why did mercantilsts believe that nations should set up over seas colonies?

Mercantilists believed that nations should establish overseas colonies to enhance their wealth and power through the accumulation of precious metals and resources. Colonies provided raw materials that could be exploited and exported back to the mother country, reducing dependence on foreign imports. Additionally, colonies served as markets for manufactured goods, which bolstered domestic production and created a favorable balance of trade. Ultimately, this approach aimed to increase national prosperity and economic self-sufficiency.