In line with mercantilist theory,
A) governments had nothing to do regarding trade and manufacturing policies.
B) Latin American countries traded exclusively with their "mother" countries.
C) Latin American colonies were encouraged to manufacture.
D) American colonies were viewed as sources of raw materials and markets by Europeans.
E) the production of heavy industrial products was instituted in Mexico in 1734.

Question

Quizplus · Accepted Answer

Mercantilist theory held that a country's wealth and power were based on its balance of trade, meaning that export revenues should surpass import expenses. To achieve this, countries like Britain would view their American colonies as sources for raw materials and as markets for manufactured goods, increasing exports and decreasing imports to balance trade. Therefore, D is the correct answer. Choices A, B, and E are incorrect as they are either false or irrelevant to mercantilist theory. While C is partially correct in that colonies were encouraged to manufacture, it is not specific to Latin America and does not align with the idea of colonies being exploited for raw materials.

In Line with Mercantilist Theory