colonial mercantilism

Colonial Mercantilism

A step towards the American Revolution

Objective: Students will examine the economic policy

of mercantilism in order to understand the impact on

England and England’s colonies.

Think about1. Why did England, France, and Spain

establish colonies in North America?2. What resources did these European

Nations hope to find in North America?

Part I: Mercantilism

What is mercantilism?

Beginning around 1650, the British pursued a policy of mercantilismmercantilism in

international trade.

What type of products did England export?

Manufactured goods

Raw materials

What type of products did England’s colonies export

Manufactured goods

Raw Materials

What is Mercantilism?

Mercantilism is a system of Mercantilism is a system of tradetrade where where coloniescolonies sold sold raw raw materialsmaterials to to EnglandEngland who used who used those resources to produce those resources to produce manufactured goodsmanufactured goods that were that were sold to colonies.sold to colonies.

What is Mercantilism?

Mercantilism is an economic theory that states a nation becomes stronger by keeping strict control over its trade.

It also states that a nation should have more exports than imports.

TIMBER

FISH

IRON

INDIGO

RICE COTTON

RESOURCES

RESOURCES

MANUFACTURED GOODS

Mercantilism To achieve this balance of trade, the

English passed laws exclusively benefitting the British economy. These laws created a trade system whereby Americans provided raw goods to Britain, and Britain used the raw goods to produce manufactured goods that were sold in European markets and back to the colonies.

On your paper there is a chart with a set of characteristics that describe mercantilism between England and its colonies. For each characteristic, place a check in the box to indicate whether England or its colonies benefitted from mercantilism.

Characteristics of Mercantilism

England English Colonies

Colonist were not permitted to make most of the finished products made in England XProducts such as tobacco and wood could only be sold to England or its colonies. XColonists could only use English ships to trade their goods. XColonial ships were protected by the English navy XColonist had to buy molasses from English colonies in the West Indies XColonist were assured a ready market for their goods XGoods traded between Europe and America had to pass through England to be taxed

X

Who Benefits from Mercantilism?

For every $4 of timber the colonists sold to England, England manufactures were able to make a table that sold for $24. Under mercantilism, colonist had to buy their furniture from England because England always wanted to maintain a favorable balance of trade.

2 £ ( British Pounds) = $4

12 £ ( British Pounds) = $24

Solve this Math

The colonies sell four bundles of timber to England. They make $_______

English manufactures sell two tables to the colonies. They make $ ______

In total England makes $______ In total colonist make $ ______ Who earned more from the sale of goods,

England’s colonies or England? Explain. Who benefits most from mercantilism?

Explain

How did mercantilism impact England and England’s colonies? Explain.

In your response you must include three of the words below: Import raw materials export manufactured goods

Part II: Let’s examine the resources

Take a few moments and examine the resource map

Using information on the map complete “What Did They Have” chart and questions

Be prepared to share your chart

What resources do the English colonies have?

How can they use those resources?

Trading is a means of obtaining natural resources and/or

manufactured goods which are not readily available.

England’s colonies grew a system of trade developed between it’s colonies, England, Africa, and the West Indies

This trade became known as the Triangular Trade

The trade between England and its colonies would lead to economic interdependence. What does that mean?

Economic Interdependence: Depending on another for resources,

goods, or services The condition in which events in one

part of a community, state, nation, or world or one sector of the economy affects events in another part or sector

Triangular Trade

Trade routes that linked American colonies, West Indies, Africa, and England

Triangular Trade

New England rum was shipped to Africa and traded for slaves, which were brought to the West Indies and traded for sugar and molasses, which went back to New England.

Other raw goods were shipped from the colonies to England, where they were swapped for a cargo of

manufactured goods.

Triangular Trade Routes In order to learn more about the

system of trade between the English colonies, England, Africa, and the West Indies you will label a trade map

Using the ? Label the Trade Map on your paper

What natural resources or goods were the English colonies able to obtain?

What natural resources or goods was England able to obtain?

Based on triangular trade were England’s colonies, England, Africa, and the West Indies economically interdependent?

How did triangular trade benefit England and its

colonies in North America?