What economic theory posits that the colonies existed primarily to benefit the mother country by providing raw materials?

The concept of mercantilism is rooted in the idea that the economic prosperity of a nation largely depends on its accumulation of wealth, particularly gold and silver, which could be achieved by maintaining a favorable balance of trade. In this context, colonies were established primarily to support the economic interests of the mother country. They would supply raw materials unavailable in the parent country, which could then be manufactured into goods. These goods would be sold back to the colonies and other markets, thus fueling the wealth of the mother country.

Mercantilism reflects a system where the colonies have a limited role, primarily functioning as suppliers of resources and markets for the finished products of the mother country. This relationship was characterized by strict regulations and trade monopolies controlled by the colonial powers, ensuring that the economic benefits flowed back to the home nation rather than allowing the colonies to develop their own independent economies.

In contrast, the other economic theories mentioned do not fit this description. Free trade advocates for open markets and minimal restrictions on trade between nations, focusing on mutual benefits rather than colonial exploitation. Most Favored Nation Status refers to trade agreements that grant specific trade advantages, which do not align with the colonial framework of mercantilism. Lastly, laissez-faire capitalism promotes minimal government intervention in the economy