What is mercantilism and how did the colonies fir into mercantilist theories?
Mercantilism is an economic system that was arranged and became prevalent in European society in the 17th and 18th centuries. The system endorsed the use of a monopoly to control access to and from markets such as the East India Companies set up by the British and Dutch or VOC (French). These companies would hold a monopoly over the trade to a licensed area and the colonies fit into the theory as a market for the goods developed in the home country to be exported outward and also for raw materials to be fed from the colonial possessions back to the home country for production.
