Mercantilism.

Slides:

Advertisements

Similar presentations

“No complaint... is more common than that of a scarcity of money.”

Advertisements

European Competition A. Mercantilism –1. Dominant economic theory –2. Country’s strength = amount of gold & silver.

Protectionism as a Phenomenon of the World Economy Stanislav Ternovskiy IE-09.

European Commercial Revolution 1. Essential Question  How did Mercantilism help to create a better environment for Free Enterprise? 2.

Exploration and Expansion: New Patterns of Trade Ms. James.

THE COLUMBIAN EXCHANGE. The Columbian Exchange was the transfer of During the colonization of the Americas FOOD, PLANTS, ANIMALS, DISEASES.

GLOBAL ECONOMICS Bell Work: Why do countries trade with each other?

Chapter 15 Pre- Test. 1. A major change during the Commercial Revolution was development of standard A) Systems of money B) Trade routes C) Measurement.

Knowledge Connections

1 CHAPTER I INTRODUCTION TO INTERNATIONAL TRADE  Classical Theories of International Trade –Mercantilism –Absolute Advantage –Comparative Advantage 

Economic system based on the belief that the country with the most gold and silver is the most powerful nation Mercantilism.

Mercantilism. Why would mercantilism be hard to define? Or is it?

Capitalism An Overview of the United States & its Economy.

International Trade Created by: Ms. Daniel. We talk about trade in terms of trade between nations, but the actual trade is between individuals and businesses.

Ms. Susan M. Pojer Horace Greeley HS Chappaqua, NY Edited by Cheryl Rhodes From Mercantilism to Adam Smith: The Evolution of the Modern Capitalist System.

Age of Exploration – Mercantilism Export 1. Export 2. Import 2. Import 3. Mercantilism 3. Mercantilism 4. Capitalism 4. Capitalism 5. Market Economy.

From Mercantilism to Adam Smith: The Evolution of the Modern Capitalist System.

New Patterns of Trade The creation of colonies in the Americas and elsewhere led to the exchange of new types of goods, the establishment of a new pattern.

Mercantilism. Mercantilism The belief that a country’s economic strength depended upon getting more gold by exporting more than importing.

Mercantilism. The Age of Exploration provides tremendous wealth from colonies: Mexico/ S. America Gold / Silver Spain North America Sugar / Coffee England/

Exploration and Expansion: New Patterns of Trade

International Trade Describe the benefits of international trade.

International Trade Theory

Four Schools of Economic Thought

International Economics By Robert J. Carbaugh 7th Edition

European Expansion and Business

The Columbian Exchange Mercantilism

International Business Lecture No,20 By Dr.Shahzad Ansar

“Every man lives by exchanging.”

International Trade Paul Callahan lives in California. On a typical day, he eats bananas from Guatemala in his cereal. He gets into a car that was made.

THE COMMERCIAL REVOLUTION

Ms. Susan M. Pojer Horace Greeley HS Chappaqua, NY

European Competition A. Mercantilism 1. Dominant economic theory

EUROPE Changes their Economic System

Welcome Back! Find your seat. Welcome Back! Find your seat.

Today’s Agenda Mercantilism is Dead The Birth of Classical Economics The Invisible Hand Keynes’s Prescription for Depression The Battle for Economic Supremacy!

Economics Chapter 2 Review.

Ms. Susan M. Pojer Horace Greeley HS Chappaqua, NY

The International Economy

Exploration and Expansion: New Patterns of Trade

International Trade Ch. 16

International Economics By Robert J. Carbaugh 9th Edition

Colonial Government: English Economic Principles

Knowledge Connections

Free Trade Theory Why Nations Trade.

Gains from Trade. Gains from Trade The Gains from Trade Figure 8.2 At the free trade price of PW, Home supply will fall to S1 and Home demand will.

Mercantilism Indicator 7-1.3

International trade.

EUROPE Changes Their Economic System

International Economics By Robert J. Carbaugh 9th Edition

Exploration and Expansion: New Patterns of Trade

Economic Changes Today I will identify the changes made to European economies as a result of the Enlightenment.

Do Now – 4/18 & 4/19 Show Me What You Know (15 min)

U.S. and the World Vocabulary Coach Lott.

Monopoly The sole possession or control of the supply or trade in a resource or service.

Learning Economics.

Consequences of the Age of Exploration

Knowledge Connections

Exploration and Expansion: New Patterns of Trade

Exploration and Expansion: New Patterns of Trade

Goal 7: Economics & Choices

The dominant economic system in the world

Aim: 11/ 21/ 2016 How did the system of Mercantilism serve the interests of the Mother Country? Q New Unit: American Revolution.

Roots of Modern Capitalism

Chapters 1-3 Test on Friday (warm-ups due on test day)

The Basic Principles of Mercantilism

Mercantilism (17th Century) Limited Amount of Wealth in World

Presentation transcript:

Mercantilism

The prevailing economic theory in the 1600 & 1700s was mercantilism

Characteristics of Mercantilism A nation’s wealth is measured by the amount of gold & silver in its country

Characteristics of Mercantilism A nation should export more than it imports

A trade surplus: exports > imports A trade balance: exports = imports A trade deficit: exports < imports

Characteristics of Mercantilism The government should place tariffs on imports

Characteristics of Mercantilism The government should allow only unfinished products (raw materials) to be imported

Characteristics of Mercantilism The government prohibits finished products to be imported

Characteristics of Mercantilism The government should subsidize key industries

Characteristics of Mercantilism The government takes an active role in the economy

Protectionism is the modern-day equivalent to mercantilism

Mercantilism is the opposite of laissez-faire

Laissez-Faire is free enterprise Laissez-Faire is free enterprise. Businesses compete for consumer dollars without much government regulation/intervention.