What Are the Advantages of Colonization?

The primary advantage of colonization is that it allows governments to profit by leasing lands to companies to farm natural resources. It also provides a government the opportunity to draw additional taxes from citizens by taxing colonists. Colonization also expands a nation’s land area.

Throughout history, colonization has been viewed as a favorable endeavor by large, powerful nations because it was a way of drawing additional profits for the government as well as private business owners. In short, it was a positive situation for members of a nation’s economic sector. Governments allowed companies to expand into colonized areas at reduced tax rates, and some even provided government subsidies to tempt companies to do so. Those companies financed the mining of natural resources and drew profits off of the buying and selling of them. Governments collected money for the use of the land as well as taxes from the companies and citizens of the colonies. This, however, is what led to the American Revolutionary War. Citizens became tired of being taxed by England without having any representation in the government that levied the taxes and tariffs that harmed their economic livelihood. This sparked a revolt against England, and the colonists declared their independence.