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Role Of The Colonies In The British Mercantilist System Research Paper

¶ … mechanics of the mercantilist doctrine from the incipit of the early modern period in Europe, with special focus on the role of the North American colonies in the British mercantilist endeavors. Mercantilism was the leading economical belief system to support the attempts of regimes and great European powers of the 17th century to organize their economic existence. The reasons standing behind mercantilism originated from the need to provide a solid structure for the financial foundation of "the nation-state -- the emerging post-medieval governmental mode that rapidly replaced feudal localism in northern and Western Europe after the mid-fifteenth century" (McCusker, 1996, p. 337), in order to ensure the survival and prosperity of the state. Specifically, nationalism held the promise of political stability and better living prospects for everyone, bringing considerable improvement to the prior era's imbalance.

The majority of early modern Europe countries, starting with Spain, Portugal, and Great Britain, adopted the mercantilist system to various extents. For the United Kingdom, it became "the unchallenged assumption that . . . government had the right and responsibility to regulate economic activities in the interest of the common good" (McCusker, 1996, p. 337). Therefore, mercantilist policies were also supposed to employ economic means to achieve other political and social aims, and they were endorsed because they appeared to work. Indeed, compared...

Along with the expansion of the British nation-state and its economic monopoly over American colonies, the formalization of the relationship between the two correlative sides became increasingly more structured (McCusker, 1996, p. 341).
According to the implementation of the mercantilist system, the annexed New World colonies were expected to help Great Britain achieve a profitable balance of trade, together with increasing specie inflow, attempting to reach a higher level of economic self-sufficiency by minimizing imports and maximizing exports. Moreover, the colonies were supposed to supply the mother country with raw material that would otherwise require obtaining by costly imports from external sources.

In addition, the colonies constituted a solid generator of exports by ensuring the production and sale of highly demanded manufactured products on European markets and, at a lower cost, back to the colonies that lacked the means to transform raw materials into manufactured products, which ultimately benefited the welfare of the mother country. In exchange for these economic advantages, Great Britain would…

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Bibliography

Feldmeth, Greg D. "Early British Colonial Trade Regulations" U.S. History Resources. Last modified June 24, 2004. http://home.earthlink.net/~gfeldmeth/USHistory.html

McCusker, John J.. "British Mercantilist Policies and the American Colonies." In The Cambridge Economic History of the United States, edited by Stanley L. Engerman and Robert E. Gallman, 337-363. New York, NY: Cambridge University Press, 26 April 1996.
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