Colonies may serve as markets for these unsold products. They also may provide cheap land, valuable natural resources, and investment opportunities for surplus capital. However, this theory does not fully explain imperialism because many colonies were not economically profitable.
Effects of imperialism include certain benefits that a ruling nation may
provide for territories that form part of its empire...
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For example, the colonial powers built new communications and transportation systems, established universities, and introduced modern medical practices. However, many nations took advantage of their colonies by exporting natural resources without providing economic return for most of the people. Many colonial administrations were insensitive to local customs and destroyed old ways of life...