Question

An early economic system, mercantilism, was founded on what practice?

Answer 1

Hello there.

An early economic system, mercantilism, was founded on what practice?

Trade internationally with both raw materials and manufactured goods, where ever they may be found.

Answer 2

The correct answer is B. Mercantilism was founded on taking resources from colonies to mother land, turning raw materials into goods, and then selling goods to the colonies.

The exploitation of the resources of the colonies was fundamental for the development of this economic system, based on the accumulation of currency to strengthen the economies of the colonial powers. The creation of markets where to sell their products was the way in which these countries obtained redit with respect to the raw materials of their colonies, which were practically their only buyers, because the rest of the countries used the same system, and did not want to enrich rival powers.

Therefore, the exploitation and subsequent sale to the colonies constituted a weak economic circle, which fell when the first independence movements and the economic liberalism appeared.