What is the theory of mercantilism? How did it influence European colonization efforts in Africa, North America, and South America?

Mercantilism is the belief in the idea that a nation's wealth can be increased by the control of trade: expanding exports and limiting imports. In the context of the European colonization of North America, mercantilism refers to the idea that colonies existed for the benefit of the Mother Country.

Explanation:

keeping a cash reserve because cash flow is the the movement of money through a company and if it just sits there, it wont the movement