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Mercantilism is the economic theory that a nation's prosperity depends on its supply of gold and silver; that the total volume of trade is unchangeable. This theory suggests that the government should play an active role in the economy by encouraging exports and discouraging imports, especially through the use of tariffs. Spain and England used the mercantile system to benefit the mother countries. The mercantile system had special regulations, which usually extracted some sort of reaction from the colonies. If necessary, the policies would be changed to better suit the mother country. The favorable balance of trade was upheld through certain regulations. No foreign trade was allowed for the colony unless it passed through the mother country first and it moved on mother country ships. Furthermore, no foreign settlers were allowed in the colony. No colonial industry was allowed. The colony had to remain dependent on the mother country...

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