How did mercantilism lead to competition among European powers?

Mercantilism was an economic theory prevalent in Europe from the 16th to the 18th centuries, which emphasized the role of the state in managing the economy and acquiring wealth. The theory posited that a nation's strength could be maximized by limiting imports via tariffs and maximizing exports, leading to a favorable balance of trade. To achieve this, countries sought to acquire and control colonies that could provide raw materials and markets for their manufactured goods.

This drive for colonial expansion significantly heightened competition among European powers as nations raced to establish and maintain colonies across the globe, particularly in the Americas, Africa, and Asia. Control over these territories was not only a means to secure valuable resources such as gold, silver, and agricultural products but also to secure markets where those goods could be sold, further boosting national wealth and power. As European countries such as England, France, Spain, and the Netherlands expanded their empires, conflicts and rivalries inevitably arose, leading to wars and diplomatic tensions fueled by mercantilist ambitions.

The other options fail to capture the essence of how mercantilism drove competition. For instance, promoting free trade contradicts the principles of mercantilism, which emphasizes state control and regulation. Likewise, mercantilism involved significant government