Mercantilism Mercantilism An economic system Bound mother country

Mercantilism

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.

"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

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

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

What did this trade look like? Furs, fish, wood France New France go o re d ba c to um , o ea s, w co tu ac c r, r , p ob oo ga ur , t d Su flo m ac h, ru uf Fis r, an ga M Su ds Manufactured goods West Indies