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- A new economic theory adopted by many European nations withthe goal of maintaining a favorable trade balance-whereby acountry exports more than it imports.- European nations sought to accumulate silver and gold by requiring their colonies to trade exclusively with their own mother country.- European nations were able to both expand and control their colonial economies/ their territorial claims overseas.- European countries depended on raw materials and natural resources from their colonies; colonies were also viewed as markets for finished goods.- This policy encouraged competition among Europeans to establish morecolonies and the expansion of colonial empires.

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