Louisiana’s Economy Resources and Rewards

Louisiana’s Economic History Section 2 - Vocabulary

What is barter? Barter is a way of trading goods and services without the use of money The first economic system in Louisiana was based on barter. Native American would trade goods with each other.

Define mercantilism Mercantilism is when the government of a country controls its resources and its markets to acquire wealth. European settlers in Louisiana developed an economy based on agriculture and commerce. This economy is based on mercantilism, a command economy controlled by the government.

Define smuggling Smuggling is illegal trade Some colonists struggled to survive in this mercantile economy. They began to find other ways to meet their needs. People began to hunt for food, grow their own crops, and make their own goods. They traded these items with neighboring colonies. Because these colonies belonged to different nations it was considered illegal. Trade with these colonies was considered smuggling.