MERCANTILISM Paraphrase Preview Challenge American Heritage Dictionary The

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MERCANTILISM

MERCANTILISM

Paraphrase Preview Challenge American Heritage Dictionary • The theory and system of political economy

Paraphrase Preview Challenge American Heritage Dictionary • The theory and system of political economy prevailing in Europe after the decline of feudalism, based on national policies of accumulating bullion, establishing colonies and a merchant marine, and developing industry and mining to attain a favorable balance of trade.

Paraphrase Processing Challenge • Mercantilism is:

Paraphrase Processing Challenge • Mercantilism is:

According to mercantilism • There is a limited amount of wealth in the world.

According to mercantilism • There is a limited amount of wealth in the world.

Every nation wants to keep its share or even earn more. • A nation

Every nation wants to keep its share or even earn more. • A nation does this by maintaining a favorable balance of trade, with exports equaling or surpassing imports.

Preferably, IMPORTS EXPORTS

Preferably, IMPORTS EXPORTS

Colonies have major role in mercantilism. • A colony provides raw materials to the

Colonies have major role in mercantilism. • A colony provides raw materials to the mother country to be manufactured into some consumer products.

 • Then, colonists buy the finished products, creating a market and creating profits

• Then, colonists buy the finished products, creating a market and creating profits for the mother country.

Colonial Raw Materials • • Lumber Naval stores Cotton Tobacco Indigo Wool Sugar •

Colonial Raw Materials • • Lumber Naval stores Cotton Tobacco Indigo Wool Sugar • • Furs Dried fish Rice Leather Whale products Ores Flax

Colonial Imports • • Furniture Hats Cloth Pots, pans China and porcelain Paint Tea

Colonial Imports • • Furniture Hats Cloth Pots, pans China and porcelain Paint Tea Shoes • • • Glass Paper Tools Utensils Slaves

Triangular Trade Routes Develop

Triangular Trade Routes Develop

Mercantilism Enforcement • How does the mother country enforce mercantilism? • Laws • Tariffs

Mercantilism Enforcement • How does the mother country enforce mercantilism? • Laws • Tariffs • Navy

Who Benefits?

Who Benefits?