Presentation is loading. Please wait.

Presentation is loading. Please wait.

Welcome to a two-period problem-solving exercise! (Hey, its better than a lecture…) You will need the following materials to successfully complete this:

Similar presentations


Presentation on theme: "Welcome to a two-period problem-solving exercise! (Hey, its better than a lecture…) You will need the following materials to successfully complete this:"— Presentation transcript:

1

2 Welcome to a two-period problem-solving exercise! (Hey, its better than a lecture…) You will need the following materials to successfully complete this: - New piece of paper and pencil or pen. (You will be writing answers to 12 questions.) - Your notes from class (on Effective Occupation, Joint Stock, Social Contract, etc.) - A calculator might be helpful too. Sticking with our theme of capitalism, the circumstances you will work through will eventually explain why the Parliament of the mid-1700’s implemented policies that angered the 13 Colonies. NOTE: To work this simulation, use your mouse to click on buttons, hot-links, or parts of a map. Do not use your keyboard to advance. Though this simulation is done in a PowerPoint program, the slides are not in an order that will work for the keyboard, and you would be lost. Alright. I’m ready to begin. Over the next two periods you will be given circumstances in common business practices. Most of the time this simulation puts you in the position of a businessperson, trying to make good money by shipping goods to places that want to buy them. A few times, this simulation will ask you to think like a government ruler and implement policy. You want to make decisions in both of these roles to be a successful businessperson and have a secure country. Take me to the end of the basic econ section (I’ve already done questions 1 – 5). I’ve gone through the triangles of the 1600’s (finishing #8), take me to the 1700’s. Take me to the end of the basic econ section (I’ve already done questions 1 – 5). I’ve gone through the triangles of the 1600’s (finishing #8), take me to the 1700’s. Already worked on this for a period?

3 1 st You need to understand Two Rules of Shipping & Trading in the late 1600’s and 1700’s …and are still followed today. 1. Traders need to move supplies of goods to where they are in demand. (Thus, the supplies will sell for big money, and the trader makes good profit for his efforts.) yes Understand? not sure no 2. Never lose money getting to a destination. -- done by keeping your cargo hold full when you travel! For example, if you were in Virginia, and there were some amazing products in England that people in Virginia wanted, you could not simply head across the ocean to load up your empty ship. Let’s see how you handle this: Ok… NEXT

4 Supply and Demand If you can reason your way through the following scenario, then the resulting rules of supply and demand should make sense to you. Let’s say you live in a community of 100 families. Your family is one of eighty-five families in this community that run orange groves. After a year of toil, your family harvests ten thousand oranges from your grove. The eighty-four other groves harvest about the same in each grove. #1a: What is the likelihood that you will be able to sell your personal harvest of oranges within your community for big money? WHY? Or, put another way, how will the price of oranges fare in your community? WHY? (Use the words “supply” and “demand” in your answer; the supply of oranges in the community verses the demand there would be…) #1b: What are you going to have to do to sell your oranges? That is, if your oranges will not sell in your community (for reasons you’ve described) then where will you sell them? (Where to find demand for your supply?) #1c: Thus, the basic rules of “Supply & Demand” are …what? Got it

5 Supply and Demand Wow! So you already know the age-old rules of “supply & demand.” Ok. Then you don’t need the help given by clicking the other buttons. Thus, answer the following question as #1 on your paper. #1: Write out the basic rules of “Supply & Demand” and profit. Got it! Oh, umm, forget this, take me back to the choices Oh, umm, forget this, take me back to the choices

6 2. Never lose money getting to a destination. -- done by never going anywhere with an empty ship! To begin, let’s look at shipping practices in our world today. A shipping transaction with which many families have had some experience is moving one’s household belongings to another section of the country; from a house in one part of the country to a house in another part of the country. And YOU will be the shipper… This rule became a “must” in shipping and trading and is still in effect in our world today. You must understand WHY… continue

7 How much will it cost you, and how much will customers pay? -- To move your 18-wheeler from the state of Washington to the Midwest will cost you $4000. (Diesel, maintenance, food, lodging, driver’s pay, dispatcher’s salary, storage, loaders, management and other overhead.) back -- Professional loaders can actually pack the belongings of FOUR average households into an 18-wheeler’s cargo container! (Amazing but true.) 1 st Family Loaded 2 nd Family Loaded 3 rd Family Loaded 4 th Family The Going Rate for one household to the Midwest is $2000 Alright, I understand.

8 How much will it cost you, and how much will customers pay? -- To move your 18-wheeler from the state of Washington to the Midwest will cost you $4000. (Diesel, maintenance, food, lodging, driver’s pay, dispatcher’s salary, storage, loaders, management and other overhead.) back -- Professional loaders can actually pack the belongings of FOUR average households into an 18-wheeler’s cargo container! (Amazing but true.) 1 st Family being loaded. The Going Rate for one household to the Midwest is $2000 A family has hired your company to move their household belongings from Olympia, Washington to Red Wing, Minnesota. It is an average household, but your truck is empty. Their belongings will be the first household from the Puget Sound to be packed into your truck. As your crew begins loading, you tell your customers that you hope the truck will be in Minnesota in three or four weeks, and you ask at what number they can be reached. The husband scoffs at your time frame. He proclaims that it only takes him four days to drive that distance, and demands to know why your truck will be taking such a leisurely time! You have to tell him the the truck will be here in Washington for a while. E m p t y #2a. Why?--Why wait? The answer lies in how much money you would or wouldn’t make if you took off for Minnesota right now… 2b. If money were no object to this man, and he insisted that you get his stuff to Minnesota in four days, what would you have to charge him? continue

9 After two weeks, you receive three more orders for moves to Minnesota that are within a workable radius. With your Olympia family’s belongings on board, you pick up the belongings of two families in Seattle and one more Yakima: Full truck! You make your way across. After offloading in three Minnesota cities, your truck now sits empty in Red Wing, Minnesota. Your company has collected $ ! back YESsss!

10 After two more weeks, you receive three more orders for moves to Minnesota that are within a do-able radius. With your Olympia family’s belongings on board, you pick up the belongings of two families in Seattle and one more Yakima: Full truck! You make your way across. After offloading in three Minnesota cities, your truck now sits empty in Red Wing, Minnesota. Your company has collected $ ! But the truck is empty, sitting in Minnesota. Your headquarters and the driver’s home is in Washington. back #3a. If you were to allow your driver to just drive the truck back now (as is) how much money would your company have made when all was said and done? (Need help with the math? Then, go back one or two screens.) 3b. To get that truck and driver back home without losing money and with a profit, what does your company need to do? Ok! I’ve answered. Ok! I’ve answered.

11 Not so fast… If you answered 3b correctly, you might have said that all your driver needed to do was to load up four families in Minnesota that are moving to Washington, and drive home with a nice profit at the end. Ah, if only life were really that simple. Unfortunately, in the shipping business, that almost never happens. There are never four families wanting to move back to where you just came from. back Ok! I’ve answered. Ok! I’ve answered. Yet, like any shipper in the world, in history, you can not bring yourself to move without a full cargo hold. It would be an inexcusable waste. Though your original prices took into account that your driver may need to stay in a region for a week or more to gain new customers nearby, after three weeks, only two families have been found that are requesting a move to Washington. Your driver and some local loaders have loaded these two families’ households in the truck. To wait longer in hopes that more families will soon wish to move to Washington is simply NOT feasible. First, the two families that have been loaded can’t wait forever, and secondly, you are paying your driver’s expenses! #4. So, what’s the solution? (No: You can’t change the rate or wait longer.) Little help, PLEASE! Little help, PLEASE!

12 Not so fast… If you answered 3b correctly, you might have said that all your driver needed to do was to load up four families in Minnesota that are moving to Washington, and drive home with a nice profit at the end. Ah, if only life were really that simple. Unfortunately, in the shipping business, that almost never happens. There are never four families wanting to move back to where you just came from. back Ok! I’ve answered. Ok! I’ve answered. Yet, like any shipper in the world, in history, you can not bring yourself to move without a full cargo hold. It would be an inexcusable waste. Though your original prices took into account that your driver may need to stay in a region for a week or more to gain new customers nearby, after three weeks, only two families have been found that are requesting a move to Washington. Your driver and some local loaders have loaded these two families’ households in the truck. To wait longer in hopes that more families will soon wish to move to Washington is simply NOT feasible. First, the two families that have been loaded can’t wait forever, and secondly, you are paying your driver’s expenses! Little help? Sure. You’ve got two households loaded for WA in your truck now. You’re not going to get any more for WA. But, there are families wanting to move to other places. For example, there are several families wanting their households moved to California. (In fact two families want to move to the same city--San Francisco--right now.) But, remember, you MUST keep a full truck all the way to Washington. Now, answer #4. clear #4. So, what’s the solution? (No: You can’t change the rate or wait longer.)

13 Not so fast… If you answered 3b correctly, you might have said that all your driver needed to do was to load up four families in Minnesota that are moving to Washington, and drive home with a nice profit at the end. Ah, if only life were really that simple. Unfortunately, in the shipping business, that almost never happens. There are never four families wanting to move back to where you just came from. back Ok! I’ve answered. Ok! I’ve answered. Yet, like any shipper in the world, in history, you can not bring yourself to move without a full cargo hold. It would be an inexcusable waste. Though your original prices took into account that your driver may need to stay in a region for a week or more to gain new customers nearby, after three weeks, only two families have been found that are requesting a move to Washington. Your driver and some local loaders have loaded these two families’ households in the truck. To wait longer in hopes that more families will soon wish to move to Washington is simply NOT feasible. First, the two families that have been loaded can’t wait forever, and secondly, you are paying your driver’s expenses! IF you answered correctly, Then you could NOT go directly back to Washington from Minnesota. Behind the help button, the hint was to finish loading your truck with families wanting to go to a different region (like California). You’d drop the two CA families off in CA, and then you’d……. So, did your answer include going to a third location and arriving in Washington with a full truck? yes no #4. So, what’s the solution? (No: You can’t change the rate or wait longer.)

14 1 st You need to understand Two Rules of Shipping & Trading in the late 1600’s and 1700’s …and are still followed today. 1. Traders need to move supplies of goods to where they are in demand. (Thus, the supplies will sell for big money, and the trader makes good profit for his efforts.) yes Understand? not sure no 2. Never lose money getting to a destination. -- done by keeping your cargo hold full when you travel. For example, if you were in Virginia, and there were some amazing products in England that people in Virginia wanted, you could not simply head across the ocean to load up your empty ship. Let’s see how you handle this: Ok… So, now you completely understand all aspects of the two rules of shipping and trading, above? You’ve answered questions #1 – 4? --You’re good? If not, then click on the buttons above and find what you need. Yes, I’m good.

15 1 st You need to understand Two Rules of Shipping & Trading in the late 1600’s and 1700’s …and are still followed today. 1. Traders need to move supplies of goods to where they are in demand. (Thus, the supplies will sell for big money, and the trader makes good profit for his efforts.) yes Understand? not sure no 2. Never lose money getting to a destination. -- done by keeping your cargo hold full when you travel. For example, if you were in Virginia, and there were some amazing products in England that people in Virginia wanted, you could not simply head across the ocean to load up your empty ship. Let’s see how you handle this: Ok… Manufactured Goods = Big $ In the 1600’s & 1700’s, the category of goods that is in high demand in the New World and other parts of the world are Manufactured Goods. These are “high tech” goods made in developed countries and sold for big money in less developed parts of the world (which is most of the world in 1630). * One more thing that would help you out: Better Understanding

16 Getting Manufactured Goods to places that needed them in the 1600’s, would bring a trader more money than any other demanded good. Yes, you too can make applesauce and apple juice with ease! London Fruit Presses In our day, high-tech. goods are items such as microwave ovens, computers, cars, etc. of the last thirty years. In the 1600’s the equivalent would be items of sophisticatedly shaped refined iron, possibly with multiple moving parts; or, most goods that require “manufacturing.” These could be anything from tools such as hammers and saws, to mass production of rum, to items such as fruit presses. (The opposite of manufactured goods are raw materials such as coal, lumber, fruit, etc.) Look at it this way: I can drop you off in a vast wilderness and you might gather a lot of wood to build a fire for warmth. However, there is no way you--yourself--are going to make a viable fruit press. You would not be able to mine the ore, set up a refinery to make iron, make molds for the large central grooved screw of the press, develop the nuts and bolts from scratch, and so on. Rather this would take an educated network of people working on development and manufacturing. Think of Manufactured Goods as “high tech” products. These are products that require sophisticated education to design and invent, as well as intricate machinery for production. Manufactured goods come from “developed countries” and are in great demand in “less developed countries.” * It might take two or three generations in a highly educated, secure country to develop great manufacturing capabilities. In the 1600’s, Britain, Spain, and France all qualify, and were developed manufacturing countries. * On the other hand, in the 1600’s, New World COLONIES are not even a generation old, are unsecure, have no real educational institutions, and are busy carving their lives out of the wilderness. They are the ones in dire need (demand) of manufactured goods that they have no way of producing. Defining Supply & Demand Any sophisticated product that requires greater trained workers, an industrial complex, engineers for development and so on, will demand a HIGHER PRICE TAG to pay for it all,

17 Getting Manufactured Goods to places that needed them in the 1600’s, would bring a trader more money than any other demanded good. Yes, you too can make applesauce and apple juice with ease! London Fruit Presses Think of Manufactured Goods as “high tech” products. These are products that require sophisticated education to design and invent, as well as intricate machinery for production. Manufactured goods come from “developed countries” and are in great demand in “less developed countries.” * It might take two or three generations in a highly educated, secure country to develop great manufacturing capabilities. In the 1600’s, Britain, Spain, and France all qualify and were developed manufacturing countries. * On the other hand, in the 1600’s, New World COLONIES are not even a generation old, are unsecure, have no real educational institutions, and are busy carving their lives out of the wilderness. They are the ones in dire need (demand) of manufactured goods that they have no way of producing. Supply & Demand #5. Explain why manufactured goods cost more than raw materials or goods resulting from simple labor. Use examples. Any sophisticated product that requires greater trained workers, an industrial complex, engineers for development and so on, will demand a HIGHER PRICE TAG to pay for it all, and because not just anyone can make such products. For example: Today, if you had a saw and ax, and went to work on some trees, how much can you sell a cord of wood for? (Ask someone if you don’t know.) Compare that to how much a manufacturer charges for a new full-size laptop computer. (The cord of wood is a raw material and the computer is a manufactured good.) Which would most retailers rather have: A truckload of wood, or a truckload of computers? Thus, Manufactured Goods will bring a higher price in general, especially in the wilderness areas where they can’t be produced and are in high demand. Price Tag Done

18 1 st You need to understand Two Rules of Shipping & Trading in the late 1600’s and 1700’s …and are still followed today. 1. Traders need to move supplies of goods to where they are in demand. (Thus, the supplies will sell for big money, and the trader makes good profit for his efforts.) yes Understand? not sure no 2. Never lose money getting to a destination. -- done by keeping your cargo hold full when you travel. For example, if you were in Virginia, and there were some amazing products in England that people in Virginia wanted, you could not simply head across the ocean to load up your empty ship. Let’s see how you handle this: Ok… Before you proceed, all of the following should be true: -- You understand the basic economic rules of “supply & demand.” -- You understand how general long-range shipping works throughout history. (always travel with a full cargo hold, will have to travel to multiple locations to get home with a full cargo hold). -- You understand why the price of manufactured goods is higher than other goods, where they are made, and where the demand is for such goods in 1600’s. -- You have answered questions 1, 2, 3, 4, & 5 on your paper. (These were found throughout your exploration of the three rules above.) Next Manufactured Goods = Big $ In the 1600’s & 1700’s, the category of goods that is in high demand in the New World and other parts of the world are Manufactured Goods. These are “high tech” goods made in developed countries and sold for big money in less developed parts of the world (which is most of the world in 1630). Better Understanding *

19 Now you must apply the previous three items about shipping & trading to the time-periods we are studying. Below, begins a trade scenario for the 1600’s. Your overall goal is to make money by creating trade routes that will move supplies of goods to where they are in demand, keeping your hold full of goods at every step of the journey, thus keeping your costs down. To begin, remember, getting supplies of Manufactured Goods to where they are in demand will certainly yield you the most money. Luckily your ship is currently in the British Isles. You get the ship loaded and sail to …? (click on the correct location) back

20 Alright! Your shippers just sold some fruit presses, hammers, saws, bolts, and a hundred gallons of rum for a tidy $10,000. The cost of production in England (factories, workers, materials, etc.) came to a mere $4000. However, the cost of your two to three month voyage across the Atlantic came to a whopping $3000. Question #6 : Your ship now sits empty in the colonies. If you order the ship back to London as it is now, how much money will you end with? If this does not make sense to you, then review the concept of “Supply & Demand” or jump back to when your ship was in Great Britain and explore the incorrect options; they help you understand. Review, please done Check out the info about RUM as a “manufactured good” --click on the corkscrew…

21 R U M Rum is actually a highly sophisticated manufactured good. A rum producer requires thin metal tubing fashioned into coil formations or pipes, various reliable hoses, connectors, clamps, a pressure system, elevated containers and more. For the 1600’s these are extremely difficult to make. Of course, one also needs the key ingredients: Sugar Cane & Molasses So, imagine the technology, manufactured equipment, and skill necessary (in the 1600’s) to produce such fine rum by the hundreds-of- thousands of gallons. Rum producers of the British Isles honed their distilling skills to become the best in the world. Rum became a chief export for Britain, as millions of gallons were sold throughout the world. (Even today this holds true.) Very handy knowledge to have for this simulation. So, remember this… impressive!

22 Supply and Demand If you can reason your way through the following scenario, then the resulting rules of supply and demand should make sense to you. Let’s say you live in a community of 100 families. Your family is one of eighty-five families in this community that run orange groves. After a year of toil, your family harvests ten thousand oranges from your grove. The eighty-four other groves harvest about the same in each grove. #1a: What is the likelihood that you will be able to sell your personal harvest of oranges within your community for big money? WHY? Or, put another way, how will the price of oranges fare in your community? WHY? (Use the words “supply” and “demand” in your answer; the supply of oranges in the community verses the demand there would be…) #1b: What are your going to have to do to sell your oranges? That is, if your oranges will not sell in your community (for reasons you’ve described) then where will you sell them? (Where to find demand for your supply?) #1c: Thus, the basic rules of “Supply & Demand” are …what? Got it!

23 The French government and military will not let your merchant ship into their colonial holdings. They want to keep their colonies for their benefit. They refuse to allow their work to benefit an English company. back Fine. Be that way.

24 Are you kidding? France, Spain, and other European countries are as “developed” as your country. They make tons of Manufactured Goods. Trying to sell England’s Manufactured goods there would be like trying to sell your oranges to a guy who owns an orange orchard. …So, where is the Demand for your manufactured goods? Oh, yeah.

25 A few outposts and slave traders about the African continent would like some Manufactured Goods (especially rum), but there are not enough steady buyers here in this century to offload ship after ship. Great, long-term demand is what you’re looking for. You need a place with thousands of happy English citizens wanting Manufactured Goods. Ok.

26 The Spanish government and military will not let your merchant ship into their New World holdings. They want to keep the areas they are developing for their benefit. They refuse to allow their work to benefit an English company. Fine. Be that way.

27 back Thus, as has been mentioned, the second main rule of shipping and trading must be adhered to. (See previous work, if necessary.) Now, your goal is to get back to the British Isles (to get those wonderful Manufactured Goods) without losing any money. Question #7 : Generally, what do you need to do in order to accomplish this? done ? ? ? ? ? Check out the info about RUM as a “manufactured good” --click on the corkscrew…

28 R U M Rum is actually a highly sophisticated manufactured good. A rum producer requires thin metal tubing fashioned into coil formations or pipes, various reliable hoses, connectors, clamps, a pressure system, elevated containers and more. For the 1600’s these are extremely difficult to make. Of course, one also needs the key ingredients: Sugar Cane & Molasses So, imagine the technology, manufactured equipment, and skill necessary (in the 1600’s) to produce such fine rum by the hundreds-of- thousands of gallons. Rum producers of the British Isles honed their distilling skills to become the best in the world. Rum became a chief export for Britain, as millions of gallons were sold throughout the world. (Even today this holds true.) Very handy knowledge to have for this simulation. So, remember this… impressive!

29 back So, what do the growing colonies of the North American coast have in abundant supply--YEAR ROUND--that would be in demand in England? (Understand, you want to keep moving your ships to the colonies with Manufactured Goods all year, and you can’t go back to England with an empty ship.) To find out which colonial good might fulfill this plan, examine them further by clicking on each item. Question #8-A : If you can, write down the colonial item that will allow you to consistently get back to the British Isles without losing money. For those of you curious about RUM as a “manufactured good,” click on the corkscrew… Have a Supply of: Dairy & Livestock (milk, cheese, beef, etc.) Raw Materials (wood) Grain, Wheat, Corn Tobacco can’t figure 8-A I answered 8-A

30 R U M Rum is actually a highly sophisticated manufactured good. A rum producer requires thin metal tubing fashioned into a coil formations or pipes, various reliable hoses, connectors, clamps, a pressure system, elevated containers and more. For the 1600’s these are extremely difficult to make. Of course, one also needs the key ingredients: Sugar Cane & Molasses So, imagine the technology, manufactured equipment, and skill necessary (in the 1600’s) to produce such fine rum by the hundreds-of- thousands of gallons. Rum producers of the British Isles honed their distilling skills to become the best in the world. Rum became a chief export for Britain, as millions of gallons were sold throughout the world. (Even today this holds true.) Very handy knowledge to have for this simulation. So, remember this… impressive!

31 What about shipping the livestock alive, to be slaughtered in the British Isles? What about drying the meats and packing them in preserving salts and spices? Though the British Isles are labeled as a “developed nation,” still the place is not some concrete, towering modern day Los Angeles type of setting. Farms, livestock, and dairies are throughout every region. Thus, the money and effort you would have to spend to get some animals across the Atlantic alive or to dry and pack the meat would drive your prices far above the plentiful local producers in England. Do you remember how long a voyage across the Atlantic took in 1600? Really, there is no demand for these New World products Any way you look at it, you’ve got a problem with your products, the sea air, and the time of transit. After two months at sea, just how welcome will your ton of maggot-infested, stench-filled, diseased meat be at the harbor markets of the British Isles? Likewise, imagine the state of cheese and milk that you might have packed aboard. makes sense

32 Compared to many areas in the world in the 1600’s, western Europe is certainly labeled as a “developed” region. However, you should not mistake it for some sort of flattened wasteland. Large forested areas existed throughout Scandinavian and Germanic regions as well as in and around many mountain ranges throughout Europe. The British Isles, itself, had forested areas it could draw from. Remember, the cost of your Atlantic voyage is $3000. The going rate for the amount of lumber you’d be able to put in your cargo hold is about $1000. Though many dislike having to go outside of the empire for such necessities, it is impossible to ignore the much closer supplies of lumber. Transportation costs are not as costly from these European regions. It would be impossible to simply raise your price. Nobody would buy from you. Anybody would buy lumber from a nearby supplier for a third of your price. that figures

33 Are you thinking Cash Crop? Well, it was a cash crop that finally got Britain going in the New World; it was Tobacco that “saved” the Jamestown colony. So, this is a good thought. However, as has been noted on past screens, you need a product that will get you back to the British Isles YEAR ROUND. Crops such as tobacco or corn are harvested once a year. Though tobacco is dried and shipped at several points of the year, and though your ship might take on tobacco at some point, it is not enough for continuous round-trips to England to get manufactured goods. For crying out loud! For crying out loud! corn tobacco wheat

34 Ok. You didn’t actually choose any of the four Colonial goods for your answer to 8-A, did you? If you’ve been paying attention, exploring the various options, then you can see that NONE of Colonial goods will make a viable option for year-round trading. (If you don’t understand, then go back.) So, write (or rewrite) an appropriate simple answer for #8-A. It was, after all, a trick question. Now, for future use, copy this next question and then give a general one-sentence answer on your paper: #8-B: Rather than find a colonial good to ship directly from the Colonies to England (an impossibility for much of the year), what are you going to have to do instead? Hint: You are going to have to go further before you go back to the British Isles. Hint: Remember the similar situation in the modern-day shipping example? The moving company wanted to get the truck back to Washington, but the only “demand” for moving was to California, so… Back one Ok, I’ve finished 8-B

35 Back to 8-B Back to 8-B #8-C: Have: Dairy & Livestock (milk, cheese, beef, etc.) Raw Materials (wood) Grain, Wheat, Corn Tobacco Have: Sugar & Molasses Need: Food varieties, wood, a few M.Goods, slaves (It’s a great tropical climate to grow sugarcane as a cash crop, but not so good for healthy grain and corn. Also, there are no great forests for lumber to support industry and such.) Have: Lots of Manufactured Goods Need: certain raw material Britain can get wood and such at or near home, but there is a certain manufactured Good that is in great demand for one of its famous industries. Have: slaves Need: A few tools and rum. The European areas here often had many mobile slave-catching operations. Have: M.Goods. Want: Gold, few imports You now need to come up with a final solution. -- explore all information on this screen -- use knowledge from the past several screens. -- click on the four or five land masses of this map to find out what your travel costs will be from your present location. Finally, write down or diagram a route that will keep your ship full, supplying goods to where the demands are. NOTE: You do NOT have to see to everyone’s needs! There are a lot of choices, but you only have to use the land masses that get you back to England for more M.Goods! --That’s it. Remind me of $ spent and gained. Done w/8-C

36 Back to 8-B Back to 8-B #8-C: Have: Dairy & Livestock (milk, cheese, beef, etc.) Raw Materials (wood) Grain, Wheat, Corn Tobacco Have: Sugar & Molasses Need: Food varieties, wood, a few M.Goods, slaves (It’s a great tropical climate to grow sugarcane as a cash crop, but not so good for healthy grain and corn. Also, there are no great forests for lumber to support industry and such.) Have: Lots of Manufactured Goods Need: certain raw material Britain can get wood and such at or near home, but there is a certain manufactured Good that is in great demand for one of its famous industries. Have: slaves Need: A few tools and rum. The European areas here often had many mobile slave-catching operations. Have: M.Goods. Want: Gold, few imports You now need to come up with a final solution. -- explore all information on this screen -- use knowledge from the past several screens. -- click on the four or five land masses of this map to find out what your travel costs will be from your present location. Finally, write down or diagram a route that will keep your ship full, supplying goods to where the demands are. NOTE: You do NOT have to see to everyone’s needs! There are a lot of choices, but you only have to use the land masses that get you back to England for more M.Goods! --That’s it. Remind me of $ spent and gained. Done w/8-C The cost of your two to three month Atlantic voyage to the colonies (crew, maintenance, etc, came to a whopping $3000. A return voyage will cost no less. (Your original sales of rum and tools to the brought you $10,000, while your manufacturing costs in England cost you $4000.) The cost of your two to three month Atlantic voyage to the colonies (crew, maintenance, etc, came to a whopping $3000. A return voyage will cost no less. (Your original sales of rum and tools to the brought you $10,000, while your manufacturing costs in England cost you $4000.) close

37 Depending on which section of the colonies from which you left, buying some lumber, wheat and other needed items to take to the West Indies, loading, paying your crew to sail there, etc. would roughly cost you $ $1200. F.Y.I. The cost of cargo, ship and crew from the West Indies to your home port in the British Isles would be about $4000. ok

38 If you found items in the American colonies that these small, colonial, African trading areas could use, your cost of materials, crew and maintenance would be about $3500. F.Y.I. Your shipping costs to your home port in England might come to around $1200. However, what cargo does Africa have to offer the British Isles? They don’t really use slaves there.

39 If you found a commodity to ship to your mother country’s main competitors, it would cost you about the same as a shipment to England: $ purchase of colonial goods. ok

40 If you answered 8-C correctly, the following should be true: There was only one stop between the colonies and the British Isles, making your route to and from the British Isles somewhat resemble a three-sided geometric shape. They buyers and sellers at every one of your stops are perfectly happy. Yes, this is a fine example of how a capitalistic venture can leave all parties satisfied. * * Hmm… I need to back up. Such bliss can’t last forever. Dark clouds are on the horizon…

41 The type of trading situations you’ve been working through was the famed Triangle Trade Also called The Golden Triangle, a company could have several ships spread within this pattern to keep the flow of goods going year round. A corporate ship would arrive at each port every month or more, depending on how many ships the company could afford to put in the triangular route. In past history classes you may have been told that the triangle trade existed, but as always, this class is interested in WHY such a route existed. If you wish, add to your class notes the following question (which will be on the test) and answer it for yourself now. Test Question: Once shippers dropped off the valuable manufactured goods in colonial ports such as Massachusetts or New York, they wanted to get back to England to get more manufactured goods. Yet, they went further away, to the West Indies or elsewhere before heading to England. WHY? Why did they have to go to places like the West Indies first? $ Click to see a few other triangular routes run by the British and her rivals.

42 Also called The Golden Triangle, a company could have several ships spread within this pattern to keep the flow of goods going year round. A corporate ship would arrive at each port every month or more, depending on how many ships the company could afford to put in the triangular route. The type of trading situations you’ve been working through was the famed Triangle Trade In past history classes you may have been told that the triangle trade existed, but as always, this class is interested in WHY such a route existed. If you wish, add to your class notes the following question (which will be on the test) and answer it for yourself now. Test Question: Once shippers dropped off the valuable manufactured goods in colonial ports such as Massachusetts or New York, they wanted to get back to England to get more manufactured goods. Yet, they went further away, to the West Indies or elsewhere before heading to England. WHY? Why did they have to go to places like the West Indies first? $ See a few other triangular routes run by the British and her rivals.

43 Also called The Golden Triangle, a company could have several ships spread within this pattern to keep the flow of goods going year round. A corporate ship would arrive at each port every month or more, depending on how many ships the company could afford to put in the triangular route. The type of trading situations you’ve been working through was the famed Triangle Trade In past history classes you may have been told that the triangle trade existed, but as always, this class is interested in WHY such a route existed. If you wish, add to your class notes the following question (which will be on the test) and answer it for yourself now. Test Question: Once shippers dropped off the valuable manufactured goods in colonial ports such as Massachusetts or New York, they wanted to get back to England to get more manufactured goods. Yet, they went further away, to the West Indies or elsewhere before heading to England. WHY? Why did they have to go to places like the West Indies first? $ A triangle route serving French interests.

44 Also called The Golden Triangle, a company could have several ships spread within this pattern to keep the flow of goods going year round. A corporate ship would arrive at each port every month or more, depending on how many ships the company could afford to put in the triangular route. The type of trading situations you’ve been working through was the famed Triangle Trade In past history classes you may have been told that the triangle trade existed, but as always, this class is interested in WHY such a route existed. If you wish, add to your class notes the following question (which will be on the test) and answer it for yourself now. Test Question: Once shippers dropped off the valuable manufactured goods in colonial ports such as Massachusetts or New York, they wanted to get back to England to get more manufactured goods. Yet, they went further away, to the West Indies or elsewhere before heading to England. WHY? Why did they have to go to places like the West Indies first? $ Spain used a triangle trade route which utilized its manufactured goods, its early start in the slave trade, and its colonial sugar plantations.

45 Also called The Golden Triangle, a company could have several ships spread within this pattern to keep the flow of goods going year round. A corporate ship would arrive at each port every month or more, depending on how many ships the company could afford to put in the triangular route. The type of trading situations you’ve been working through was the famed Triangle Trade In past history classes you may have been told that the triangle trade existed, but as always, this class is interested in WHY such a route existed. If you wish, add to your class notes the following question (which will be on the test) and answer it for yourself now. Test Question: Once shippers dropped off the valuable manufactured goods in colonial ports such as Massachusetts or New York, they wanted to get back to England to get more manufactured goods. Yet, they went further away, to the West Indies or elsewhere before heading to England. WHY? Why did they have to go to places like the West Indies first? $ Here, Spain runs slaves to the Spanish and British colonies. This route displays an older run from the American coast to Europe, as Spain could charge a higher price for slaves in those days. Spain was the first major power to sell large quantities of slaves; no competition. trouble ahead

46 Through the decades Britain’s King and Parliament work at their end of the Social Contract. (do you need to look in your notes for “The Social Contract?”) Corporations and religious groups “needed” to make use of Britain’s New world holdings for profits and religious societies. Needs of the PeopleGovernment Response The King granted charters to corporations and religious groups in strategic places of Britain’s New World claims. Rights that expansive-minded English citizens enjoyed on the British Isles were sometimes trampled in the New World by theocracies and corporate-run colonies. This would also slow effective occupation. The King and Parliament revoked charters of religious and corporate colonies over several decades, bringing all American colonies under “Royal Rule.” Then, Parliament and the King created the entity of The United Kingdom of Great Britain: All British holdings around the world became a part of a greater Britain, with all British citizens enjoying all the same rights. There became a need for government decisions that could QUICKLY serve local needs in each colony regarding roads, townships, legal matters, and most of all, protection. Parliament was two months away (one-way) and also too disconnected form local matters such as roads. The King appointed local governors to each colony as they became Royal Colonies. Governors and Lieutenant Governors would make immediate executive decisions on local matters. Secondly, Parliament allowed each colony to set up its own colonial legislature; citizens of each of the 13 colonies enjoyed representative democracy on items that effected their local lives. PROTECTION (perhaps the biggest need of all) Indians: British government officials make treaties with Indians for peaceful coexistence when possible. When attacks happen, local militia hold off the attacking Indians while the governor orders professional British soldiers into action. Every colony has troops at its disposal for responses to enemies. The French: The French & British have been archrivals for two centuries. By 1750, there have been four “world wars” between these two super-powers. As a part of the United Kingdom, the 13 colonies played their part, getting attacked (and defended by professional British soldiers) and Colonial Militia joined the attacks on New France. Everyone knows that a huge showdown is looming. The loser of this upcoming war will be wiped off the New World. British Navy: The biggest and best navy in the world! The British Isles have spent millions making British shipping the safest in the world from privateers, the French, and others. Traders and shippers throughout the U.K. enjoy more security on their voyages than colonists of the other world powers. According to the information above, and to the Social Contract, should the 13 Colonies have any “right to rebel?” Briefly explain. #9 Time Passes from 1650 through 1750.

47 #10: A. List three or four services on the previous screen that the British Government PAYS for. B. Where does ANY government get the money to pay for such services? Ok. I answered. And don’t tell me they “print” the money. I’m asking where the govt. gets its funding from.

48 #10: A. List two or three services on the previous screen that the British Government PAYS for. B. Where does ANY government get the money to pay for such services? So, guess who-all paid taxes to support this vast British empire with the world’s finest Navy to protect trade routes, armies around the world to protect colonial holdings, dozens of governors and bureaucracies to manage local ports, projects, and other needs. Answer:

49 #10: A. List two or three services on the previous screen that the British Government PAYS for. B. Where does ANY government get the money to pay for such services? So, guess who-all paid taxes to support this vast British empire with the world’s finest Navy to protect trade routes, armies around the world to protect colonial holdings, dozens of governors and bureaucracies to manage local ports, projects, and other needs. The citizens of the British Isles. -- JUST the citizens of the British Isles! (Get it? British Colonists around the world do not pay taxes to Parliament, the U.K, nor any national entity.) So, protection and government services are basically FREE for colonists, paid for by taxpayers of the British Isles. Is that fair?

50 #10: A. List two or three services on the previous screen that the British Government PAYS for. B. Where does ANY government get the money to pay for such services? So, guess who-all paid taxes to support this vast British empire with the world’s finest Navy to protect trade routes, armies around the world to protect colonial holdings, dozens of governors and bureaucracies to manage local ports, projects, and other needs. The citizens of the British Isles. -- JUST the citizens of the British Isles! (Get it? British Colonists around the world do not pay taxes to Parliament, the U.K, nor any national entity.) So, protection and government services are basically FREE for colonists, paid for by taxpayers of the British Isles. Actually, from it was a fair deal for citizens and businesses of the British Isles. Here’s why: -- The poor dregs that risked their lives in the wilds of the new world had little to pay, and the empire was benefiting from their work at effective occupation. -- The corporations on the British Isles benefited greatly from the protections and services of the government and military, making it possible to make bundles of $ selling their manufactured goods! So, those that feel the great benefit ought to pay the burden. -- The benefits of “elbow room”: The general population of the British Isles didn’t hesitate to pay for a greater empire, giving the poor, landless people a place to go (as indentured servants that would someday be free and have their own land) and the sons of the rich a place to expand. For his taxes, the wealthy father of eight sons knew six of his sons had a place to go for success in farming or business. Ok. So everyone’s happy. Answer:

51 Sure. All were happy with this tax-and-benefit arrangement until the mid-1700’s approached. Thanks to the aforementioned policies of the U.K., the 13 Colonies grew, became very populated (effectively occupied), and became …DEVELOPED! 1750’s Look behind the buttons below, find out the problems Britain is facing in On your paper, write down four or five of them. New England Southern Colonies France, Spain, others #11: Check out the triangle trade of the 1750’s: lets see… British Isles Done it all

52 With “Royal Rule” established, the idea of the U.K. a reality, with the protection of the British army and navy, the New England colonies became the picture of their mother country. The third, forth, fifth and sixth sons of successful English industrialists, merchants, farmers and others came here and flourished. New England factories produced tools, rum, hats, and other manufactured goods. Iron was even being refined right in New England --very high tech. These colonial factories benefited from having closer access to all sorts of raw materials (wood, ores, etc.). And, colonial lumberjacks and miners often sold their raw materials on the open world market; selling to the highest bidder, be they British, French, Spanish or others. The mother country was losing raw materials to its enemies! How could manufacturers across the Atlantic possibly compete? The once “golden triangle” was broken. The name “New England” is well deserved for most of these northern colonies. Ok. That’s the way it goes.

53 British colonization began in this region with agricultural business: Joint Stock Companies funded and ran colonial settlements that were to grow cash crops. By the 1700’s, voyages across the Atlantic became cheaper and less time- consuming. Corporate travel for transatlantic voyages became less necessary. Add to this Britain’s U.K. policies of local government services and protection, and an environment existed for many farming communities run and supported by simple citizens rather than corporations. Cash crops, then, became controlled by middle class farmers that owned their land in the Southern Colonies and not corporations of the British Isles. (Many businesses in the British Isles suffered and some closed.) In this time-period, colonial farmers could even sell their cash crop to the highest bidder, be it a corporation, a tobacco company, or even a French or Spanish company. Aside from business closures in the British Isles, the other effect was the shrinking of Britain’s TAX-base. Remember, only British Isle businesses paid taxes. Those businesses were shrinking thanks to Colonial prosperity. Southern Colonies That’s life...

54 A Greater Need for Raw Materials from the New World Several things conspired to make raw materials from the New World more viable on the world market. - Further development and industrial expansion depleted some European forests. - Various European wars disrupted trade between European powers. Specifically, Britain, Spain, and France had been engaged in repeated conflicts with each other. France and Spain sought to deny Britain such raw materials as lumber and iron ore (which are used to make ships, canon, guns, and ammunition. - Travel across the Atlantic to the New World became faster and cheaper. (Trade winds discovered, better ship design, better maps, etc.) So, getting raw materials from the New World was not as expensive. Secondly, colonists adhered to basic laws of “supply & demand”: Taking advantage of a European market that now badly wanted their lumber and ore, colonists simply sold to the highest bidder. Often, British companies lost out to French companies! Many in the British Isles see two problems with all this: 1. British Isle businesses are decreasing, and they are the ones who pay the taxes to support the empire! 2. Why should British businesses lose out to French businesses! “Why would we go through a hundred years of blood, sweat, and tears so France can buy our colonial lumber that will be used to build ships to kill us!” Just doesn’t seem right.

55 1750’s Have: Manufactured Goods (rum, tools, etc.) Cash Corps (tobacco) Raw Materials (wood, ore) Need: Sugar & Molasses Slaves Have: Manufactured Goods Need: Sugar & Molasses Raw Materials (wood, ore) Have: Slaves Need: Rum, tools Have: Sugar & Molasses Need: lumber, food, slaves Hey! What’s going on here! Extra Credit: Pick either 1750’s triangle, and tell what’s being sold on the three legs.

56 (You should look at this screen after the other four.) Factories have closed and unemployment is up (due to reasons mentioned on other screens). “The 13 Colonies are now producing Manufactured Goods that we used to produce. The 13 Colonies are now engaged in triangle trades that leave us out.” The Parliament pays for services (like governors, army, navy) from taxes paid by citizens and businesses on the British Isles. If businesses are closing and more people are unemployed, then less tax money comes in, and then it’s pretty tough to fund the army and navy that everybody across the United Kingdom expects. “Raw materials from our prosperous colonies (that our policies and protection built) are actually getting sold to our enemies!” (Dang colonists…) The British Isles NEED those raw materials! Some things have GOT to change! Hmm. Yep, that’s bad...

57 As noted throughout this, Britain’s policies and protections MADE those prosperous 13 Colonies. Now, actions by those prosperous colonies and others are hurting Britain. What should Parliament and the King do to correct the problems listed in this last section? YOU are Parliament and King. So, logically or illogically, create new laws that shore up all the deficiencies faced by the British Government in It might be best to look again at each of the problems on the last screen, and create new laws to address them. You will need more than one law… #12: I’ve done it!

58 You are DONE! Back to general trade rules Back to colonial trade beginning quit As noted throughout this, Britain’s policies and protections MADE those prosperous 13 Colonies. Now, actions by those prosperous colonies and others are hurting Britain. What should Parliament and the King do to correct the problems listed in this last section? YOU are Parliament and King. So, logically or illogically, create new laws that shore up all the deficiencies faced by the British Government in It might be best to look again at each of the problems on the last screen, and create new laws to address them. You will need more than one law… #12: I’ve done it!


Download ppt "Welcome to a two-period problem-solving exercise! (Hey, its better than a lecture…) You will need the following materials to successfully complete this:"

Similar presentations


Ads by Google