1. Mercantilism

2. Mercantilism: An economic system
Bound mother country and colonies together
Theory= a nation’s prosperity is based upon its supply of precious metals (gold, silver): the more wealth a nation held the more powerful it would become.
This could be achieved two ways:
By exporting more goods than were imported, or
By acquiring colonies that could produce wealth.

3. "A Favourable Balance of Trade"
Colonies could produce a particular item so the mother country would not have to spend money on foreign imports (think furs in N.F.)
Also, colonies could serve as markets for finished products from the mother country (a fur hat for you, Mr./Ms. Colonist?)
Ideally, the mercantilist empire was completely self-sufficient

4. The King Assumes Control…
This system requires heavy government involvement
Laws enacted that prohibit trade with rival empires (England, Spain)
1663: Louis XIV assumes control of New France; Company of 100 Assoc. relieved of their monopoly

5. Who benefits? Definitely meant to benefit the mother country
But the colonists had it pretty good too…
France paid for defence, and the cost of running the colony's government

6. What did this trade look like?
Furs, fish, wood
France
New France
Manufactured goods
Manufactured goods
Sugar, rum, tobacco
Fish, flour, peas, wood
Sugar, rum, tobacco
West Indies