Knowledge Connections Vocabulary  Balance of Trade Tariff Term Definition Knowledge Connections Picture

What was goal of mercantilism? Essential Question What was goal of mercantilism?

Money Power What was mercantilism? MERCANTILISM = Economic theory of how a nation can become wealthy Money Power = Goal: Build up as much wealth as you can!!!

How did a nation follow mercantilism? The theory of Mercantilism offered a step by step plan for a government to follow

What was step one of mercantilism? How To Make A Rich and Powerful Nation Step #1 EXPORT more than IMPORT What you sell to other countries What you buy from other countries Goal: Have more money coming in than going out = favorable BALANCE OF TRADE

Places to sell items made in your country What was step two of mercantilism? How To Make A Rich and Powerful Nation Step #2 Build Colonies Colonies provide: Easy access to cash crops Places to sell items made in your country

What was step three of mercantilism? How To Make A Rich and Powerful Nation Step #3 Taxes on outside goods High TARIFFS Problem: people are buying goods from other countries Solution: Charge them more money to buy foreign goods

What was step four of mercantilism? How To Make A Rich and Powerful Nation Step #4 Increase exports Don't’ let your colonies trade with other countries They either buy an item from you or they don’t buy it at all!

What was goal of mercantilism? Essential Question What was goal of mercantilism?

MERCANTILISM BALANCE OF TRADE BUILD COLONIES TRADE w/ COLONIES HIGH TARIFFS