1. The Growth of Foreign Trade Britain and especially England profited from the mercantile system. Axes, guns, chains from Eng to Amer. & Africa Slaves from Africa to Colonies Sugar and tabacco from colonies to Eng

2. The Atlantic Slave Trade The forced migration of millions of Africans was a key element in the Atlantic system and western European economic expansion

3. The Atlantic Slave Trade After 1700, Britain was the undisputed leader of the slave trade. Increasing demand led to rising prices for African slaves. Africans participated in the trade. After 1775, a campaign to abolish slavery developed in Britain.

4. Revival in Colonial Latin America Under Philip V (r. 1700  1746) Spain recovered economically and successfully defended her American colonies. Rising silver exports in the eighteenth century helped create a class of wealthy Creole (American-born white) merchants. Creole estate owners dominated much of the peasant population through debt peonage, really a form of serfdom.

5. Adam Smith Smith challenged mercantilist ideas with his defense of free trade and his argument for keeping government interference in the economy to a minimum (The Wealth of Nations [1776]). Smith was one of the Enlightenment’s most original thinkers. His work became the basis of the classic argument for economic liberalism and unregulated capitalism.