Which economic system was driven by a demand for finished goods in exchange for raw materials from colonies?

The correct answer is mercantilism. This economic system was characterized by its focus on maximizing the wealth of a nation through trade and the accumulation of precious metals. Mercantilism emphasized the role of colonies in providing raw materials, which were then transformed into finished goods in the mother country. The colonial powers sought to create a favorable balance of trade by ensuring that they exported more than they imported, thus generating wealth and power.

In this context, colonies were not just sources of raw materials; they played a crucial role in the mercantilist model by serving as markets for finished goods produced by the parent countries. Therefore, the mercantilist system essentially created a cycle where raw materials flowed from the colonies to the mother country, which then produced finished goods to be sold back to the colonies and other markets. This transactional relationship was fundamental to the colonial economic model during the period in question.