Implications of mercantilism

Colonies existed to enrich the mother country. Colonies were required to buy manufactured goods from the mother country and to sell raw materials to the mother country at controlled prices.

Government intervention in the economy. States granted monopolies (like the British East India Company), imposed tariffs on imports, and built navies to protect trade routes.

Wars over trade. European powers fought repeatedly over colonies, trade routes, and access to slave markets. The Seven Years' War (1756-1763) was effectively the first global war, with theaters in Europe, North America, the Caribbean, India, and West Africa.

Tension with American colonies. Mercantilist restrictions on the Thirteen Colonies (Navigation Acts) would help spark the American Revolution. Adam Smith would attack mercantilism in The Wealth of Nations (1776), arguing for free trade.