Mercantilism PPT PDF

Mercantilism The economic theory that led to European Colonial Empires What is Mercantilism? Mercantilism: An economic system of trade that was based on the idea that a nation’s wealth and power were best served by increasing exports, limiting imports, and getting acce...

Mercantilism The economic theory that led to European Colonial Empires What is Mercantilism? Mercantilism: An economic system of trade that was based on the idea that a nation’s wealth and power were best served by increasing exports, limiting imports, and getting access to the most gold and silver you could. Zero-Sum Game Mindset Mercantilism had the belief that wealth was finite in the world, limited amount in the world The world was a zero sum game, if you aren’t benefiting someone else is and vice versa Aspects nations needed to prioritize 1) Getting as much gold and silver as you can ○ In Mercantilism, wealth was believed to be finit so if you didn’t have wealth someone else does 2) More exports than imports ○ If exporting, making money ○ If importing, spending money 3) Colonies are a key to success ○ Colonies provide raw materials to the mother country, and can be used to create goods ○ Markets for the mother country to sell goods to 1) Getting as much gold and silver as possible In order to become a wealthy and powerful nations, you must prioritize getting gold and silver Whether this is by having gold and silver production (ex, Spain in Central America) or selling goods trade goods for gold and silver (England, Dutch, etc) 2) Exporting more goods than Importing goods Exporting (selling goods) more than importing (buying goods) means you are making more money The more a nation can become more self sufficient, the more money you have and more you can export and minimize imports 3) Importance of Colonies Establishing colonies gives you; ○ A source of raw materials to turn into finished goods ○ A new market to sell your goods to Having colonies that provide your nation with important raw materials and luxury goods is important Importance of Navies Having a strong navy allowed you to ○ Protect your ocean trade routes ○ Control overseas colonies ○ Dominate less developed nations Having a strong, large, and technologically advanced navy was required to be a world power Triangular Trade; Details Triangular Trade: Atlantic Ocean trade route between Europe, Africa, and the Americas Made up of three distinct trade routes Triangular Trade: 1) Europe to Africa Europeans sailed down to Africa and either; ○ Traded goods with African kingdoms for captives for enslaved labor ○ Kidnapped civilians for enslaved labor Bought goods like gold, ivory, and hardwoods Triangular Trade: 2) Africa to the Americas Europeans brought enslaved Africans to their colonies in the Americas ○ To be used for plantation labor and collection of raw materials Sugar, Coffee, Tobacco, Indigo, Cotton, etc Triangular Trade: 3) Americas to Europe Europeans bring raw materials produced in the Americans back to Europe ○ Will be turned into finished goods and or consumed Europeans also sell their manufactured goods back to their colonies The Atlantic Slave Trade; The Middle Passage The trade route between Africa and the Americas would be known as the Middle Passage; the main way in which enslaved people were brought ot the Americas