<P> During the economic collapse of the 17th century, Spain had little coherent economic policy, but French mercantilist policies were imported by Philip V with some success . Russia under Peter I (Peter the Great) attempted to pursue mercantilism, but had little success because of Russia's lack of a large merchant class or an industrial base . </P> <P> Mercantilism was the economic version of warfare using economics as a tool for warfare by other means backed up by the state apparatus, and was well suited to an era of military warfare . Since the level of world trade was viewed as fixed, it followed that the only way to increase a nation's trade was to take it from another . A number of wars, most notably the Anglo - Dutch Wars and the Franco - Dutch Wars, can be linked directly to mercantilist theories . Most wars had other causes but they reinforced mercantilism by clearly defining the enemy, and justified damage to the enemy's economy . </P> <P> Mercantilism fueled the imperialism of this era, as many nations expended significant effort to conquer new colonies that would be sources of gold (as in Mexico) or sugar (as in the West Indies), as well as becoming exclusive markets . European power spread around the globe, often under the aegis of companies with government - guaranteed monopolies in certain defined geographical regions, such as the Dutch East India Company or the British Hudson's Bay Company (operating in present - day Canada). </P> <P> With the establishment of overseas colonies by European powers early in the 17th century, mercantile theory gained a new and wider significance, in which its aim and ideal became both national and imperialistic . </P>

How did mercantilism contribute to the expansion of the english empire