Aim: What was the economic policy of Mercantilism? Do Now: Define and give the significance of the term, "mercantilism". What does it mean to you? Why was it created? What impacts, consequences, or “mark” did this economic theory leave behind? All are asked to use the blank “Mercantilism” chart to help assist in gaining a better understanding of the term. Please fill in the blanks.

Firstly, what is it? An economic system Goals: bullion (precious metals) and be self-sufficient Nation tries to maximize exports, minimize imports (but why?) to achieve a favorable balance of trade (a surplus) Maintained through tariffs (taxes on foreign imports) A Mother Country might rely on colonies to supply raw materials often through slave labor in exchange for finished goods Inhabitants of colonies would receive protection from mother country in return for exclusive trading rights.

Money Power What was mercantilism? Economic theory of how a nation can become wealthy Money Power = Goal: Build up as much wealth [bullion] as you can!!! In the words of Malcolm X: “By any means necessary.”

How did a nation follow mercantilism? The theory of Mercantilism offered a step by step plan for a government to follow

What was step one of mercantilism? How To Make A Rich and Powerful Nation Step #1 EXPORT more than IMPORT What you sell to other countries What you buy from other countries Goal: Have more money coming in than going out = favorable BALANCE OF TRADE

Places to sell items made in your country What was step two of mercantilism? How To Make A Rich and Powerful Nation Step #2 Build Colonies Colonies provide: Easy access to cash crops Places to sell items made in your country

The Mercantilist Argument for Colonial Expansion Document 4 The Mercantilist Argument for Colonial Expansion Source: Philip Dorf, Our Early Heritage: Ancient and Medieval History, Oxford Book Company (adapted) 4 According to this cartoon by Philip Dorf, what is one characteristic of mercantilism from the perspective of the mother country? [1] _____________________________________________________________________________________ Score Global Hist. & Geo. – June ’07 [16]

What was step three of mercantilism? How To Make A Rich and Powerful Nation Step #3 Taxes on outside goods High TARIFFS Problem: people are buying goods from other countries Solution: Charge them more money to buy foreign goods

What was step four of mercantilism? How To Make A Rich and Powerful Nation Step #4 Increase exports Don't’ let your colonies trade with other countries They either buy an item from you or they don’t buy it at all!

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

What was goal of mercantilism? Essential Question What was goal of mercantilism?

MERCANTILISM BALANCE OF TRADE BUILD COLONIES TRADE w/ COLONIES HIGH TARIFFS