European countries saw their colonies as a way to get rich. $$$$$$$$$$ Spain England Colony: land controlled by a larger country
Colony a settlement of people living in a new territory controlled by a home country (foreign government) European kingdoms set up colonies to control the land they discovered (stole) Roanoke - English
MERCANTILISM A system in which a government controls all economic activity in a country and its colonies, to make the government stronger and richer
Market Economy So……what do we sell? Economic growthPeople had more money People can buy more manufactured goods
Supply and Demand (use it to make business decisions) Supply: things people want to sell and the price they can afford to sell it. Demand: what people want to buy and how much they will spend for it.
Cottage Industry A system in which goods are produced in homes In a cottage industry, peasants made the goods that were to be sold by merchants
Cottage Industry C O L O N I E S E U R O P E Raw Materials Manufactured Goods Europe did not have to buy raw materials from competing countries. They didn’t allow their colonies to manufacture goods.
Capitalism system where citizens own property and make goods