Mercantilism dominated Europe during the colonial period, shaping economic policy and international trade. This economic philosophy encouraged nations to accumulate wealth through trade surpluses, advocating for a strong state role in the economy. Colonies served as sources of raw materials and markets for manufactured goods, with restrictions placed on colonial trade to benefit the mother country. Mercantilism also emphasized the importance of a favorable balance of trade and building national wealth through protective tariffs. This foundational economic theory significantly influenced European imperial expansion and competition among nations during the Age of Exploration and Colonization.