1. Rivalry for Colonies
Portugal & Spain had trading posts in Africa, India, & East Asia
Dutch Republic had New Netherland in America
French established an outpost in India
Estb. Quebec in Canada
England estb. Colonies in Jamestown Virginia & Massachusetts

2. Spanish Armada With England now in the America’s, Spain was not happy
English ships would attack Spanish ships for gold/silver
England (Protestant) and Spain (Catholic)
King Philip II sent 130 ships and 19,000 soldiers to attack England

3. Spanish Armada
As Spain came up the English Channel, the English navy hit the Armada
After days of fighting, the Armada was defeated
England had faster ships and better armed
Spain is weaken by this

4. Capitalism As Europe colonized, with trade came capitalism
Economic ownership of economic resources and the use of them to make a profit
Charter Company would hold licenses from the Govt. that gave the right to trade
Investors funded industrial ventures

5. Mercantilism A nation could gain wealth by:
Find large deposits of gold and silver
It could obtain gold and silver in a favorable trade balance
Colonies supplied raw materials and a place for a market for ready goods

6. Mercantilism

7. Market Economy
By late 1700’s many felt the government played to much of a role in business
Economist Adam Smith felt that the economy should be free
Defended this idea in his book Wealth of Nations
Blueprint to the US economy today