1. Merchantilism
$Mercantilism$

2. 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.

3. 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

4. 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.

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

6. 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.

7. 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

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

9. 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?

10. Triangular Trade

11. 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

13. Loose Pack

14. 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