in the early 1600s the 17th century mercantilism was the prevailing economic system that thrived in western europe mercantilism was the idea that a nation's power depended on its wealth and control of trade with other nations this economic system ultimately led to transatlantic trade between european nations and their colonies establishing colonies allowed european nations to access natural resources in order to produce manufactured materials this was essential for controlling trade and so the exchange of goods between europe and american colonies began historians categorized the english colonies into three regions based on geographic economic and cultural factors the first permanent english colony in north america was established in the southern region at jamestown virginia in 1607. this colony like the other southern colonies of maryland north and south carolina and georgia was essentially a business venture many southern colonies grew by allowing colonists to acquire their own land in order to cultivate cash crops such as tobacco rice and indigo these crops became money makers for the colonies vast plantations stretched over fertile soil with geographical and natural resources that favored cultivation and a warm climate that allowed crops to grow throughout the year the southern region would remain a primarily agricultural area for many years to come american indian tribes grew agitated as colonial settlements expanded various tribes such as the powhatan tribe tried to drive the colonists out of virginia when it became clear they would not be able to defeat the colonists many of the american indians fled the region whereas the southern colonies were developed for economic gain the new england colonies including massachusetts connecticut rhode island and new hampshire were established as outposts for religious groups such as the pilgrims and puritans while the climate and rocky soil were not conducive to growing cash crops their economy developed around the lumber trade and fishing whaling and commercial trade relations with american indians were smooth at first and included commerce and trade but as colonial new england grew so did confrontations with the indigenous people king philip's war which began in 1675 was a brief but bloody war between american indians and settlers in new england the war was named for king philip also known as medicom who was the leader of the wampanoag tribe the death toll was heavy for both sides but in the end the american indians were forced further inland the mid-atlantic colonies including new york new jersey pennsylvania and delaware some of which were created from the previous dutch new netherland colony were geographically fortunate to have good harbors and river systems that significantly shaped their development this led to the production of wheat grains and dairy which established them as the bread basket of the colonies the hudson and delaware rivers provided access to the interior of the continent and became important trade routes port cities such as philadelphia and new york city grew into major hubs for commerce pennsylvania one of the mid-atlantic colonies was established as a refuge for english quakers who faced religious persecution in great britain the quakers believed in religious toleration and fair treatment of the american indians in the area you