1. State Building in Europe 1600-1800

2. Mercantile Capitalism The doctrine of government management of foreign trade to promote a positive balance of trade. Was seen as essential to national security Rulers profited through tariffs. Policies included import restrictions, regulation of production, importation of craftsmen, subsidies to domestic industry,

3. Mercantilism and Colonies Wealth and resources were seen as finite so competition for them was fierce. Colonies provided resources and markets for goods. The mother country often held a monopoly on trade with its colonies.

5. The Impact of Warfare War was used to expand territory and acquire colonies. New methods of warfare required standing armies with more expensive training and equipment. To raise revenues monarchs needed secure finances independent of oversight. The pursuit of that goal led to absolutism.

6. Absolutism Justified by the idea of the “divine right of kings” Absolute monarchs theoretically answered to no one and were bound by no constitution. The king played the role of executive, legislative and judicial authority. Prominent examples include Louis XIV of France, Peter the Great of Russia, and Frederick William of Prussia

7. Two Different Paths France No tradition of institutional opposition to royalty Louis XIV was politically astute. Nobles saw that their interest lay in supporting the throne. Protestantism was suppressed. England Parliamentary tradition of reserved rights. The Stuart monarchs exercised bad judgment. Nobles saw the throne as threatening their interests. Puritanism challenged royal authority.