Colonial Mercantilism A step towards the American Revolution

Think about Why did England, France, and Spain establish colonies in North America? What resources did these European Nations hope to find in North America?

Mercantilism What is mercantilism? Beginning around 1650, the British pursued a policy of mercantilism in international trade.

What is Mercantilism? What type of products did England export? Manufactured goods Raw materials What type of products did England’s colonies export Manufactured goods Raw Materials

Mercantilism 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.

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.

MERCANTILISM COLONIES ENGLAND $$$ RESOURCES TIMBER IRON FISH MANUFACTURED GOODS ENGLAND INDIGO RICE COTTON

Mercantilism To achieve this balance of trade, the English passed laws. The laws (Navigation Acts) successfully regulated colonial trade to create great wealth and power for England in the 1600s. However… Colonists quickly resorted to smuggling to avoid the Navigation Acts.

Characteristics of Mercantilism England English Colonies Colonist were not permitted to make most of the finished products made in England X Products 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 navy Colonist had to buy molasses from English colonies in the West Indies Colonist were assured a ready market for their goods Goods traded between Europe and America had to pass through England to be taxed

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 $4x4 = $16 English manufactures sell two tables to the colonies. They make $ 2x24 = $48 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

Write a paragraph explaining the policy of Mercantilism and the British Navigation Acts. Imagine you are a colonist…give a “real” example” of how each worked and impacted you.