A new economic system that would dominate economic relations between Europe and the Americas developed during the sixteenth century. Which statement correctly states how this economic system affected British colonization in the Americas?

Question

A) Mercantilism motivated the British to found colonies to create better trade relationships with other countries.
B) Free enterprise motivated the British to found colonies to create more competition for their domestic businesses.
C) Mercantilism motivated the British to found colonies to acquire raw materials for manufactured goods.
D) Free enterprise motivated the British to found colonies to provide better opportunities for their entrepreneurs.

Answer 1

The correct statement is: C) Mercantilism motivated the British to found colonies to acquire raw materials for manufactured goods.

Mercantilism was an economic theory that emphasized the importance of accumulating wealth through trade, especially by acquiring raw materials from colonies, which could then be processed into manufactured goods. The British established colonies in the Americas to secure these resources for their growing economy.