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Colonization refers to a country (historically known as the suzerain) placing another separate area under its direct control. Colonization is usually achieved by establishing permanent settlements in this new area. These settlements are expected to develop the resources in the region and provide cheap raw materials or products for the European suzerain. Colonies were also expected to provide markets for manufactured goods. Raw materials were transported to the European suzerain for processing, and then shipped back to the colonies for sale at a higher price. Therefore, colonies are an important part of European mercantilist trade theory.