What economic system is aimed at strengthening a national economy through colonies?

What economic system is aimed at strengthening a national economy through colonies?

• A. Capitalism
• B. Socialism
• C. Mercantilism
• D. Feudalism

Answer: (C)

Mercantilism is an economic system that seeks to enhance a nation's power and prosperity primarily through the establishment and exploitation of colonies. The central idea of mercantilism is that a country's wealth is best measured by the amount of gold and silver it possesses, which can be increased by maximizing exports and minimizing imports. This system emphasizes control over trade and resources; colonies are seen as valuable sources of raw materials and markets for the mother country's manufactured goods. In a mercantilist framework, the government plays a crucial role in regulating economic activity, promoting exports, and establishing colonies to secure resources. This approach was prevalent from the 16th to the 18th centuries and was characterized by colonial expansion, where European powers sought to establish dominance over territories around the world to bolster their national economies. The other economic systems mentioned differ significantly in their goals and methods. Capitalism focuses on private ownership and free markets, socialism emphasizes social ownership and equitable distribution of wealth, and feudalism is a socio-economic system based on land ownership and a hierarchical structure that existed primarily in medieval Europe. None of these systems specifically target the economic strengthening of a nation through colonial expansion in the same way mercantilism does.

Mercantilism is an economic system that seeks to enhance a nation's power and prosperity primarily through the establishment and exploitation of colonies. The central idea of mercantilism is that a country's wealth is best measured by the amount of gold and silver it possesses, which can be increased by maximizing exports and minimizing imports. This system emphasizes control over trade and resources; colonies are seen as valuable sources of raw materials and markets for the mother country's manufactured goods.

In a mercantilist framework, the government plays a crucial role in regulating economic activity, promoting exports, and establishing colonies to secure resources. This approach was prevalent from the 16th to the 18th centuries and was characterized by colonial expansion, where European powers sought to establish dominance over territories around the world to bolster their national economies.

The other economic systems mentioned differ significantly in their goals and methods. Capitalism focuses on private ownership and free markets, socialism emphasizes social ownership and equitable distribution of wealth, and feudalism is a socio-economic system based on land ownership and a hierarchical structure that existed primarily in medieval Europe. None of these systems specifically target the economic strengthening of a nation through colonial expansion in the same way mercantilism does.