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Trade Across the Atlantic
Mercantilism, Salutary Neglect, & the Navigation Acts
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This is just FYI Fauna Cattle Donkeys Chickens Goats Horses Mice Sheep
OLD WORLD Cattle Donkeys Chickens Goats Horses Mice Sheep Rabbits NEW WORLD Guinea pigs Llamas Turkeys Lobsters This is just FYI
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Flora Bananas Coffee Oats Rice Sugar cane Onions Garlic Wheat
OLD WORLD Bananas Coffee Oats Rice Sugar cane Onions Garlic Wheat Black pepper Peaches NEW WORLD Tomatoes Corn Potatoes (sweet, white) Sunflowers Cocoa (chocolate) Peanuts Strawberries Squash Chicle (gum) Tobacco
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Trade in the colonies Mercantilism An economic theory
An idea on how a country’s economy should operate The mother country's ultimate goal is self- sufficiency Colonies provide raw materials not available in mother country From GBs point-of-view, what was the purpose of the American colonies?
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Trade in the colonies Mercantilism Exports > imports
Great Britain (GB) prospers Colonies exist to enrich GB, not to prosper themselves
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Trade in the colonies Mercantilism imports G.B. exports
More goods out than in imports Other Countries G.B. exports
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Trade in the colonies Mercantilism Colonies provide Raw materials
Source of raw materials Market for manufactured goods Raw materials British Colonies G.B. Manufactured Goods
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Salutary Neglect Trade in the colonies
Salutary – beneficial, advantageous GB’s unofficial policy (plan of gov’t action) in the early 1600s of allowing colonial merchants more freedom in trading as long as GB got what she needed.
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Navigation Acts Trade in the colonies
Beginning in 1650s, Parliament enacted a series of increasingly restrictive laws regarding trade & commerce in the colonies Colonists resisted GB’s authority Smuggling goods from other countries
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Trade in the colonies Provisions (requirements):
Restrict colonial trade with other countries Smuggling (by colonists) led to strict enforcement (by GB) Protect colonial goods from European competition
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NO! Raw materials British Colonies France Manufactured Goods
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NO! Raw materials British Colonies Spain Manufactured Goods
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Effects of Navigation Acts
Negative Positive European goods had to go through G.B. before going to colonies Increased prices to colonists Unable to manufacture their own products Colonial goods had to be transported on G.B. ships & only sold within the empire Limited market to sell to Protected colonies’ monopoly on tobacco Colonial shipbuilders could use their own ships They are a part of G.B., after all
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