Evaluate the impact of mercantilism on one colonial government in the New World.

The question requires that candidates make an appraisal of the impact of mercantilism on one colonial government in the New World, weighing up its strengths and limitations. Candidates may refer to mercantilism as the economic theory based on the idea that the wealth of a state depended on the amount of precious metals it could accumulate; promoting the reduction of imports; the expansion of exports; or the state’s intervention to control, regulate and limit business. This led to the application of several measures in colonial America to reinforce the presence and authority of the mother country. Due to its requirements of precious metals, the first impact of mercantilism was a stimulus for colonial expansion over new lands in search for mines. Mercantilism was also responsible for several policies that controlled production and trade in the colonies, banned industrial activities to protect European factories and regulated trade. This created a division of labour between the colonies and the imperial countries. While the colonies were supposed to provide metals and raw materials, the imperial countries produced manufactured goods. Candidates may refer to the limitations established by mercantilism as a cause of discontent for businessmen in the New World that eventually led to revolutions. Candidates’ opinions or conclusions will be presented clearly and supported by appropriate evidence.

The question required that candidates make an appraisal of the impact of mercantilism on one colonial government in the New World, weighing up its strengths and limitations.