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British policy of mercantilism- Government should regulate the trade to increase revenue and power. Colonies should serve the mother country. And mother country served by selling manufactured goods to the colonies.

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Answer:

The nascent British Empire followed a mercantilist economic policy, in which the goal was to enrich Britain, especially its already powerful bourgeoisie that exercised power since the Glorious Revolution. This policy was viewed with suspicion by the settlers because it directly harmed them by considering the colonies as mere producers of raw material and market for the productions of the metropolis.

The first reaction of the American producers and merchants was smuggling, which became the most widespread tactic to avoid restrictions on trade with the French, Spanish or Dutch. Mercantilism aimed to achieve trade surpluses, so that gold and silver would Concentrate in London, the colonies, for their part, were captive markets for British industry. The government participated through taxes and duties, and the rest went to English merchants. The category of public administration that benefited most was the military, especially the British Navy.

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