Question

under the mercantilist system colonies existed to provide markets and natural resources for the industries of the home country. laws often required a colonys raw materials to be shipped to the home country. colonial merchants and entrepreneurs were frequently barred from setting up factories and using the colonys raw materials to manufacture goods, as all manufacturing would be carried out in the european nations themselves. the products made in the european nations would then be shipped back to the colony and sold for higher profits. imports to the colonies were taxed, with the money being funneled to the mother country. to keep their own colonial markets strong, european governments often prohibited colonies from importing goods from other european countries, limiting their legal trade to the mother country. this limited competition and meant that people in colonies could buy only goods made in the home country. mercantilism was marked by protectionist policies, designed to “protect” the european nation’s economy. competition in a mercantilist systems was limited by stiff tariffs, or taxes on imported goods. european nations placed high tariffs on good coming from other nations, so their citizens would purchase more goods made in the home country. this would limit competition from other nations and businesses. it served to protect and stimulate local industry and businesses, but also raised overall prices of goods and services. state monopolies were often given to favored firms or businesses such as the british east india company in great britain or the dutch east india company in the dutch netherlands. subsidies, a sum of money granted by the government or a public body to assist an industry or business, were also used by european nations as part of mercantilist policy. 3. what are protectionist policies? describe one 3

Explanation:

Protectionist policies in mercantilism aimed to safeguard a nation's economy. One example is the imposition of high tariffs on imported goods. This limited competition from foreign - made products, encouraging citizens to buy domestic goods, which in turn protected and stimulated local industries.

Answer:

One protectionist policy is placing high tariffs on imported goods. This limits competition from other nations and businesses, protecting and stimulating local industry.