c) Mercantilism

Mercantilism was the dominant economic system during the colonial era, emphasizing the balance of trade to increase national wealth. European powers implemented various trade restrictions and navigation acts under mercantilist policies, aiming to control colonial commerce and ensure that trade benefited the mother country. This system encouraged the accumulation of wealth through a favorable balance of trade, where exports exceeded imports, and led to the exploitation of colonial resources. Mercantilism played a significant role in shaping the early economic relationships between European countries and their colonies, influencing the development of international trade and colonial policies.