Presentation on theme: "Colonial Mercantilism"— Presentation transcript:
1Colonial Mercantilism A step towards the American Revolution
2Objective: Students will examine the economic policy of mercantilism in order to understand the impact on England and England’s colonies.
3Think aboutWhy did England, France, and Spain establish colonies in North America?What resources did these European Nations hope to find in North America?
4Mercantilism What is mercantilism? Beginning around 1650, the British pursued a policy of mercantilism in international trade.
5What is Mercantilism? What type of products did England export? Manufactured goodsRaw materialsWhat type of products did England’s colonies exportManufactured goodsRaw Materials
6Mercantilism is a system of trade where colonies sold raw materials to England who used those resources to produce manufactured goods that were sold to colonies.
7What 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.
8MERCANTILISM COLONIES ENGLAND $$$ RESOURCES TIMBER IRON FISH MANUFACTURED GOODSENGLANDINDIGORICECOTTON
9MercantilismTo 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.
10Characteristics of Mercantilism EnglandEnglish ColoniesColonist were not permitted to make most of the finished products made in EnglandXProducts such as tobacco and wood could only be sold to England or its colonies.Colonists could only use English ships to trade their goods.Colonial ships were protected by the English navyColonist had to buy molasses from English colonies in the West IndiesColonist were assured a ready market for their goodsGoods traded between Europe and America had to pass through England to be taxed
11Who 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) = $412 £ ( British Pounds) = $24
12Solve this MathThe 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
13How 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