Mercantilism

Mercantilism is the theory that the more precious metals a country has, the wealthier and more powerful it is. In this theory, the country should try to gain as much precious metals as possible. If the country doesn't have a source or mines to get the bullion from, it would have to trade and have greater export and little import to have a favorable balance of trade. Mercantilists believed that nations should have colonies. Through these colonies it would gain wealth by buying raw materials and selling products. Colonies couldn't trade or engage in manufacturing with other countries, only the parent country. Only the parent country could engage in manufacturing, since it was a major source of profit. On top of that, colonial ships had to be used to transport the raw materials.
In the 1600's, mercantilism was England's economic relationship with its colonies. The English found out that they could sell the raw materials that they receive from their colonies. Also they had the colonies buy their manufactured goods. Since the English benefited so much economically from the colonies, they tried to establish as many colonies possible.