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New trade routes establishment of colonies

Definition

This refers to the creation of new paths for trade and commerce, often by sea, which led to the establishment of colonies in unexplored lands during the Age of Exploration.

Analogy

Think about it like a game of Monopoly. In order to increase your wealth and resources, you need to buy properties (establish colonies) around the board (the world). The more properties you own, the more rent (trade) you can collect from other players.

Related terms

Colonialism: This is a policy or practice where a powerful country extends its influence through diplomacy or military force over weaker territories or countries.

Mercantilism: An economic theory that advocates government regulation of international trade to generate wealth and strengthen national power. It promotes exports and discourages imports.

Age of Exploration: A period from the early 15th century and continuing into the early 17th century during which European ships were traveled around the world to search for new trading routes and partners.