What is the basis for the the economic theory of mercantilism that drove the exploration and settlement of North America by Europeans?
Mercantilism is rooted in the idea that a nation’s power stems from the authority of an absolute monarch.
Mercantilism is based on the notion that nations working together will achieve the most prosperity.
Mercantilism is based on the idea that a nation’s power stems from its wealth, which encouraged the acquisition of natural resources and developing trade in North America.***
Mercantilism is based on the principle of ensuring equal access to natural resources for all nations.
Correct
The correct answer is: Mercantilism is based on the idea that a nation's power stems from its wealth, which encouraged the acquisition of natural resources and developing trade in North America.
Explanation: Mercantilism is an economic theory that was prevalent during the 16th to 18th centuries. It is based on the belief that the wealth and power of a nation are derived from accumulating a large amount of precious metals, such as gold and silver. According to mercantilist theory, a country would seek to enrich itself by exporting more goods than it imported, creating a trade surplus.
For the exploration and settlement of North America by Europeans, mercantilism played a significant role. European countries, such as England, Spain, France, and the Netherlands, saw the Americas as a source of valuable natural resources, including timber, furs, minerals, and agricultural products. They believed that by establishing colonies in North America, they could acquire these resources and trade them back to their home countries, thus increasing their wealth and power.
The European powers employed mercantilist policies such as imposing tariffs, subsidies, and trade restrictions to ensure that they had a favorable balance of trade with their colonies. These policies were aimed at maximizing exports from the colonies and minimizing imports that could drain wealth from the mother country. This approach led to the development of a colonial economy that was tightly controlled by the European powers.
In summary, the economic theory of mercantilism, based on the idea that a nation's power stems from its wealth, drove the exploration and settlement of North America by Europeans. These European powers sought to acquire natural resources and establish colonies to create a trade surplus that would enrich their nations.