Mercantilism Flashcards

Questions and Answers

What is Mercantilism?

An economic system in which nations seek to increase their wealth and power by obtaining large amounts of gold and silver and by establishing a favorable balance of trade.

What did Mercantilism rely on?

Acquiring colonies to supply Empires with gold/resources.

What are the objectives of Mercantilism? (Select all that apply)

Disbanding the military

Import raw materials and export finished goods (correct)

Acquiring favorable balance of trade (correct)

Maximizing amount of valued metals in one's country (correct)

What are the weaknesses of Mercantilism? (Select all that apply)

Some trades couldn't be avoided but it wasn't enough to grow economy Signup and view all the answers

What were the solutions to Mercantilism? (Select all that apply)

Force colonies to provide a market for industrial goods Signup and view all the answers

What is triangular trade?

The trade between Europe, Africa, and the colonial Americas that grew out of slave trade and mercantilist economic policy. Signup and view all the answers

Describe Trade Route #1.

Slave ships from Britain to Africa to get forced labor. Signup and view all the answers

Describe Trade Route #2.

Slaves to 13 colonies to farm raw materials. Signup and view all the answers

Describe Trade Route #3.

Raw materials from NA to Britain. Signup and view all the answers

What were the results of Mercantilism on Britain?

Economy improved due to the ability to sell manufactured goods; large wealth generated used to fund wars with France and Spain. Signup and view all the answers

What were the results of Mercantilism on Colonies?

Little growth of economy due to restrictions by England; smuggling increased as colonists tried to get around restrictions. Signup and view all the answers

What were the results of Mercantilism on Africa?

Huge migration of humans due to slave traders; traditional cultures disrupted and decreased population in coastal areas. Signup and view all the answers

Study Notes

Definition of Mercantilism

Economic system aimed at increasing national wealth and power.
Focuses on accumulating gold and silver and maintaining a favorable balance of trade.

Key Reliance of Mercantilism

Depended heavily on acquiring colonies for resources to enrich empires.

Objectives of Mercantilism

Achieve a favorable balance of trade.
Maximize the quantity of precious metals within the nation's borders.
Maintain a strong military for colonial control.
Import raw materials while exporting finished goods.
Establish a robust central government with effective taxation.

Weaknesses of Mercantilism

Widespread practice among European nations led to isolation and conflict, with nations viewing each other as rivals.
Limited trade opportunities hindered economic growth and employment.

Solutions to Mercantilism Issues

Establish colonies to expand territory and resources.
Direct colonies to serve as markets for manufactured goods and sources of raw materials, exemplified by England's relationship with the US and Canada.

Triangular Trade Overview

Trade network connecting Europe, Africa, and the Americas, rooted in the slave trade and mercantilist policies of Britain.
Featured three primary port cities as key points along the trade route.

Trade Route #1

Slave ships transported from Britain to Africa to acquire forced labor.

Trade Route #2

Slaves delivered to the 13 colonies to cultivate raw materials.

Trade Route #3

Raw materials exported from North America to Britain for manufacturing purposes.

Impact of Mercantilism on Britain

Economic growth fueled by the sale of manufactured goods.
The wealth generated financed conflicts with France and Spain.

Impact of Mercantilism on Colonies

Limited economic development in colonies due to British restrictions.
Increase in smuggling as colonists sought to circumvent trade limitations.
Colonial economies primarily focused on supplying raw materials to Britain.

Impact of Mercantilism on Africa

Significant human migration due to slave trade activities.
Traditional cultures disrupted by the influx of manufactured goods and firearms.
Population declines noted in coastal areas as a result of the slave trade.

Description

Test your knowledge with these flashcards on Mercantilism, an economic system that focuses on wealth accumulation through trade and colonies. Each card covers key concepts and definitions to enhance your understanding of historical economic theories.