How did trade promote economic growth during colonial times? Trade helped develop relationships between colonies in North America but not outside the colonies. Trade allowed the colonies to give resources to people in need in different parts of the world. Nations were able to sell more products than they bought to make money. Trade provided a variety of jobs to settlers and slaves to make money.

Colonial Economy. European nations clearly understood that the expanding population, growing economy, and increasing trade with North America made it territory worth contesting as they sought to expand profits from their overseas colonies. Colonial population expanded rapidly after 1700, through increased immigration and natural growth.

president thomas jefferson hoped that the embargo act of 1807 would the united states by demonstrating to britain and france their dependence on american goods, convincing them to respect american neutrality and stop impressing american seamen. instead, the act had a devastating effect on american trade.