Mercantilism
Mercantilism is a system where one country acquires a lot of money by exporting (more
expensive) manufactured goods, while importing (cheaper) raw materials from other areas. Two
main policies were utilized in the mercantilism system: (1) the use of colonies to supply raw
materials to, and purchase manufactured goods from, the mother country, and (2) tariffs on
imports of manufactured goods from other nations, and discouragement of production of
manufactured goods in a mother country’s colonies.
Raw materials such as
silver & sugar were
exported from Latin
America, to Spain &
Portugal.
Manufactured
goods (such as
textiles) would be
exported from
Spain & Portugal to
their Latin
American colonies.