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Day 26 – Q 3. How did mercantilism pave the way for colonialism? Discuss.

3. How did mercantilism pave the way for colonialism? Discuss.

व्यापारिकता ने औपनिवेशवाद के लिए रास्ता कैसे बनाया? चर्चा करें।


Mercantilism is a system in which a country attempts to amass wealth through trade with other countries.

Colonialism is the act of one nation controlling another for economic gain. An example of colonialism was England’s control over India.


Mercantilism -> Colonisation:

  • Before industrial revolution, agricultural revolution came which generated surplus money and people invested it in trading.
  • Trading generated more money and traders started voyages to far off lands to find new markets.
  • These merchants started making political relations with foreign governments to earn more profits.
  • Foreign lands not only provided a large market but also cheap raw materials and labour. To have more control over these resources, European countries started colonizing them.
  • Hence European countries entered the third world countries as traders but then colonized them.


  • Being trading company British East India Company initially established factors at ports by taking permission from Mughal emperor.
  • As they benefited from trade they clashed with other European powers like French, Dutch to establish monopoly in trade with India.
  • To further their interest, to have greater control over resources and earn more profit, they gradually involved in war with local rulers and in course of time overthrew Mughal Empire and colonised the country.
  • Soon India was turned into market for their end products and exporter of raw materials (Free trade policy). While this led to deindustrialization in India, with economic prowess Britain emerged as a Great power during 18th-19th century.


Although largely rejected today, it was the main school of economic thought from the 15th to 18th Centuries, and was the push behind much of the exploration and colonization of other lands and many of the wars that happened during that time.

Best answer: Christina

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