During the seventeenth and eighteenth centuries, the economic theory utilized by Great Britain towards its empire was known as mercantilism. The idea behind mercantilism was to amass wealth through a favorable balance of trade, or exporting more goods than were imported. Within the idea of mercantilism, the colonies were meant to be a source of raw materials and a market for manufactured products. Even though the mercantile theory seemed to prosper between England and the colonies, the underlying resentment from the colonies towards it and its negative effects on them eventually led to its failure.
The mercantile theory dictated both the visible and invisible trades throughout the colonies. Mercantilists believed that national wealth and power were best served by increasing exports and collection precious metals in return. …
