Colonial Mercantilism A step towards the American Revolution

Colonial Mercantilism A step towards the American Revolution

Objective: Students will examine the economic policy of mercantilism in order to understand the impact on England’s colonies.

Think about 1. 2. Why did England, France, and Spain establish colonies in North America? What resources did these European Nations hope to find in North America?

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

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

n 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. n It also states that a nation should have more exports than imports. n

TIMBER RESOURCES IRON FISH MANUFACTURED GOODS INDIGO RESOURCES RICE COTTON

Mercantilism n To 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.

On your paper there is a chart with a set of characteristics that describe mercantilism between England its colonies. For each characteristic, place a check in the box to indicate whether England or its colonies benefitted from mercantilism.

Characteristics of Mercantilism England 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. X Colonists could only use English ships to trade their goods. X X Colonial ships were protected by the English navy Colonist had to buy molasses from English colonies in the West Indies X X Colonist were assured a ready market for their goods Goods traded between Europe and America had to pass through England to be taxed English Colonies X

Who Benefits from Mercantilism? n 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 n n n The 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

How did mercantilism impact England’s colonies? Explain. n In your response you must include three of the words below: Import raw materials export manufactured goods n

Part II: Let’s examine the resources Take a few moments and examine the resource map n Using information on the map complete “What Did They Have” chart and questions n Be prepared to share your chart n

What resources do the English colonies have? How can they use those resources?

Trading is a means of obtaining natural resources and/or manufactured goods which are not readily available. England’s colonies grew a system of trade developed between it’s colonies, England, Africa, and the West Indies n This trade became known as the Triangular Trade n The trade between England its colonies would lead to economic interdependence. What does that mean? n

Economic Interdependence: Depending on another for resources, goods, or services n The condition in which events in one part of a community, state, nation, or world or one sector of the economy affects events in another part or sector n

Triangular Trade n Trade routes that linked American colonies, West Indies, Africa, and England

Triangular Trade New England rum was shipped to Africa and traded for slaves, which were brought to the West Indies and traded for sugar and molasses, which went back to New England. n Other raw goods were shipped from the colonies to England, where they were swapped for a cargo of manufactured goods. n

Triangular Trade Routes In order to learn more about the system of trade between the English colonies, England, Africa, and the West Indies you will label a trade map n Using the ? Label the Trade Map on your paper n

n n What natural resources or goods were the English colonies able to obtain? What natural resources or goods was England able to obtain? n Based on triangular trade were England’s colonies, England, Africa, and the West Indies economically interdependent?

How did triangular trade benefit England its colonies in North America?