1. Aim: / 21/ 2016
How did the system of Mercantilism serve the interests of the Mother Country? Q
New Unit: American Revolution (Causes)
Why does a Mother Country value its colonies?
HOMEWORK:
Handout, “Mercantilism, Show me the Gold!”

2. Reasons why a Mother Country values its colonies:
1. The colonies supply food and raw materials
2. The colonies purchase large amounts of finished goods from its mother country

3. Mercantilism
An economic theory that a Mother country should try to collect AS MUCH GOLD AS POSSIBLE, creating wealth and power.
If a country sold more goods to other countries than it bought from them, it would acquire this wealth.

4. Raw material 2 main functions of a colony To provide
raw material s
to the
Mother country
to be a market for the
Manufactured goods
sent from England
Raw material

5. MERCANTILISM DIAGRAM
RAW MATERIAL
MANUFACTURED GOODS 5

6. England created a “Favorable Balance of Trade”:
England buys raw material from the colonies at LOW COST and turn raw material into finished goods in its factories and export for PROFIT 6

7. MERCANTILISM GOOD and BAD FOR 13 COLONIES
Colonists locked into buying and selling ONLY with England
Colonial industries in high demand-lots of job opportunities 7

8. The Navigation Acts
I No country can trade with the colonies unless the goods are shipped in either colonial or English ships
II. All vessels have to be manned by crews that are at least 3/4 English or colonial
III. The colonies can export certain products, including tobacco, sugar, rice, molasses, and furs ONLY to England
IV. All goods traded between the colonies and Europe first have to be unloaded at English ports 8