What were the economic reasons to develop imperialism?
By 1870, it became necessary for European industrialized nations to expand their markets globally in order to sell products that they could not sell domestically on the continent. Businessmen and bankers had excess capital to invest, and foreign investments offered the incentive of greater profits, despite the risks. The need for cheap labor and a steady supply of raw materials, such as oil, rubber, and manganese for steel, required that the industrial nations maintain firm control over these unexplored areas. Only by directly controlling these regions, which meant setting up colonies under their direct control, could the industrial economy work effectively—or so the imperialists thought. The economic gains of the new imperialism were limited, however, because the new colonies were too poor to spend money on European goods.