1. Aim: What was the economic policy of Mercantilism?
Do Now: Define and give the significance of the term, "mercantilism".
What does it mean to you?
Why was it created?
What impacts, consequences, or “mark” did this economic theory leave behind?
All are asked to use the blank “Mercantilism” chart to help assist in gaining a better understanding of the term. Please fill in the blanks.

2. Firstly, what is it? An economic system
Goals: bullion (precious metals) and be self-sufficient
Nation tries to maximize exports, minimize imports (but why?) to achieve a favorable balance of trade (a surplus)
Maintained through tariffs (taxes on foreign imports)
A Mother Country might rely on colonies to supply raw materials often through slave labor in exchange for finished goods
Inhabitants of colonies would receive protection from mother country in return for exclusive trading rights.

3. Money Power What was mercantilism?
Economic theory of how a nation can become wealthy
Money
Power =
Goal: Build up as much wealth [bullion] as you can!!!
In the words of Malcolm X: “By any means necessary.”

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

5. 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

6. 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

7. The Mercantilist Argument for Colonial Expansion
Document 4
The Mercantilist Argument for Colonial Expansion
Source: Philip Dorf, Our Early Heritage: Ancient and Medieval History,
Oxford Book Company (adapted)
4 According to this cartoon by Philip Dorf, what is one characteristic of mercantilism from the perspective of
the mother country? [1]
_____________________________________________________________________________________
Score
Global Hist. & Geo. – June ’07
[16]

8. 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

9. 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!

10. MERCANTILISM COLONIES ENGLAND $$$ RESOURCES TIMBER IRON FISH
MANUFACTURED GOODS
ENGLAND
INDIGO
RICE
COTTON

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

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