Mercantilism Flashcards

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.