Merchantilism $Mercantilism$

Mercantilism Between 1600 and 1932 states of western Europe influenced by a policy called mercantilism. Union between merchants (businessmen) and kings/queens & other royalty Essentially effort to achieve economic unity and political control.

Bullionism Belief that the economic health of a nation could be measured by the amount of gold or silver. Belief that hard money source of prosperity, prestige, and strength Why? Gold and silver from America gives rise to a money economy

Balance of Trade Bullionism dictated a favorable balance of trade. A nation must have gold on hand at the end of the year It must export more than it imports.

Industry & AgricultureEncouraged Each nation tries to achieve economic self-sufficiency. Will give Rise to Industrial Revolution

High Tariffs What is a tariff? A tax on imported goods Tariffs used to create a favorable balance of trade. Generally, tariffs should be high on imported manufactured goods and low on imported raw material.

Sea Power Necessary to control foreign markets. Each nation needed its own ships to avoid becoming dependent on other nations. A large added to a nation's prestige and military power

Colonies Provided captive markets for manufactured goods and sources of raw material. Mother countries controlled which countries their colonies traded with

Slavery in the Americas: History & Origins What caused the development of slavery in the New World? What factors promoted slavery as the labor force in Colonial America?

Triangular Trade

Slavery Vital to Trade in Americas 10.5 million African slaves were transported to the Americas; one-third of these were transported by Great Britain During Middle Passage, one in seven slaves died

Loose Pack

Mercantilism Changes Europe Global population explodes, thanks to Columbian Exchange Prices rise because of gold & silver from Americas Social classes based on money Beginnings of capitalism, private businesses