Mercantilism
...ports. Jean-Baptiste Colbert, the minister of finance under Louis XIV, encouraged organized factories to produce porcelains and other luxury items through subsidies. It is important to note that mercantilism depended on various foreign countries to buy the mother country’s exports. On the other hand, imports were discouraged through the use of high tariffs on imported manufactured goods. Tariffs were low on raw materials since many European nations had scarce amounts of raw materials. Raw materials were key ingredients of a flourishing economy. To obtain raw materials, Europeans turned to imperialism. In mercantilism, a colony’s only purpose was to enrich its mother country usually with precious metals and raw materials. Sea and naval power was necessary to be able to control colonies and foreign markets. In addition, a fleet in being could ...