Colonialism
Mercantilism was a significant driver of Colonialism, as, according to the theory, the colony existed for the benefit of the mother country. This assumption meant that colonies were prohibited from engaging in their own independent commerce, and therefore competing with the mother country. Colonies were established to provide customers, raw materials, and investment opportunities. Other important goals of colonialism were European political considerations, and religious fervor. The administration of the colonies established by the Europeans mirrored in some part the mother country. Spain's encomienda system of forced labor in Latin America and the Philippines was an extension of the Spanish feudal system, with the granting of territory as part of a royal extension of power. After the Spanish acquisition of the Philippines, the pace of exchange between China and the West accelerated dramatically. Manila galleons brought in far more silver to China than the Silk Road. The Qing government attempted to limit contact with the outside world to a minimum. The Qing only allowed trade through the port of Canton, what is now Guangzhou. Severe red-tape and licensed monopolies were set up to restrict the flow of trade, resulting in high retail prices for imported goods and limited demand. Spain began to sell opium, along with New World products such as tobacco and maize, to the Chinese in order to prevent a trade deficit.
The English, for their part, used the British East India Company as an agent of the crown, which was expected to govern and protect the people and commerce of the colony. The English also developed a commercial empire in North America, India, and Australia, creating colonies, with the intention of making a profit.
As a result of high demand for tea, silk, and porcelain in Britain and the low demand for British commodities in China, Britain had a large trade deficit with China and had to pay for these goods with silver. Britain began illegally exporting opium to China from British India in the 18th century to counter its deficit. The opium trade took off rapidly, and the flow of silver began to reverse. The Yongzheng Emperor prohibited the sale and smoking of opium in 1729 because of the large number of addicts.
The French followed the English to the New World, and settled Quebec in 1608. They did not populate North America as much as the English did, as they did not allow the Huguenots to travel to the New World. In addition, the heavy governmental regulations placed on trade in France discouraged settlement.
The Portuguese Empire was created through commerce bases in South America, Africa, India, and across southeast Asia.
Read more about this topic: Commercial Revolution