The British Mercantilism
Mercantilism
Mercantilism was an economic theory and practice, dominant in Europe from the 16th to the 18th century, that promoted governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers. It was the economic counterpar…
Economy of the United Kingdom
The economy of the United Kingdom is highly developed and market-orientated. It is the fifth-largest national economy in the world measured by nominal gross domestic product, ninth-largest by purchasing power parity, and twenty second-largest by GDP per capita, comprising 3.5% of wo…
Why did Britain benefit from mercantilism?
What were the benefits of mercantilism?
- It encourages the complete development of all natural resources.
- It encourages trade deficits for foreign nations.
- It naturally reduces unemployment rates.
- Cultural exchanges are encouraged to promote trade.
- It creates high levels of resentment.
Why did Americans oppose British mercantilism?
The British system of mercantilism was opposed by many American colonists because it Discouraged the export of raw material to England. Before 1763, the British policy of salutary neglect toward its American colonies was based on the desire of Great Britain to:
Did mercantilism prove successful for the British Empire?
This policy was not unreasonable in the main, and the colonists generally prospered under British Mercantilism, though they sometimes failed to understand that restrictions were aimed at others, not at them.
What was the effect of growth of mercantilism?
Mercantilism had an effect in many areas, including politics, economics and culture. Some of the major impacts included the expansion of colonies overseas, increased government regulation of trade and the promotion of manufacturing. Many of these effects still influence global trade and politics in modern society.
How did mercantilism impact the British quizlet?
Terms in this set (106) Did mercantilism help Britain or its American colonies? it helped Britain because it regarded colonies as a means of helping a mother country generate a favorable balance of trade. mercantilism is the idea of profitable trading or to sell more goods than it imported.
What is mercantilism and how did the British use it?
Mercantilism was a popular economic philosophy in the 17th and 18th centuries. In this system, the British colonies were moneymakers for the mother country. The British put restrictions on how their colonies spent their money so that they could control their economies.
How did mercantilism affect the British view of American colonies?
Colonizing America meant that Britain greatly increased its base of wealth. To keep the profits, Britain tried to keep a greater number of exports than imports. The most important thing for Britain to do, under the theory of mercantilism, was keep its money and not trade with other countries to get necessary items.
What were the effects of mercantilism?
What were the effects of mercantilism? Mercantilism led to the creation of monopolistic trading companies, such as the East India Company and the French East India Company. Restrictions on where finished goods could be purchased led in many cases to burdensome high prices for those goods.
Who benefited most from the system of mercantilism?
Answer and Explanation: The mother nations of colonies benefited most from mercantilism. This is because the colonial home nations (such as Spain or Britain) used mercantilism to acquire as many resources and assets as possible from their colonies.
Why is mercantilism significant?
Mercantilism was significant because it was the economic system followed by Britain that led to the development of Triangular Trade, the growth of slavery in the American Colonies, and was a cause of the American Revolution.
What did the British think about colonial trade?
Trade was restricted so the colonies had to rely on Britain for imported goods and supplies. ... The King and Parliament believed they had the right to tax the colonies. They decided to require several kinds of taxes from the colonists to help pay for the French and Indian War.
What was the role of the colonies in the British mercantilist system quizlet?
What was the role of the colonies in the British mercantilist system? The colonies supplied the raw materials to Britain so Britain could resell them to other European countries for a huge profit.
How did mercantilism fostered change in the British North American economy?
“Commercial exchange systems such as mercantilism fostered a great deal of change in the British North American economy because it meant an increase in the shipping industry, a single yet ready market for the colonies, and an increase in the use of slavery in the colonies.” (The response establishes the analytic ...
How did mercantilism affect colonization?
The mercantile theory held that colonies exist for the economic benefit of the mother country and are useless unless they help to achieve profit. The mother nation should draw raw materials from its possessions and sell them finished goods, with the balance favouring the European country.
How did Britain become wealthy?
British gained dominance in the trade with India, and largely dominated the highly lucrative slave, sugar, and commercial trades originating in West Africa and the West Indies. Exports soared from £6.5 million in 1700, to £14.7 million in 1760 and £43.2 million in 1800.
How did mercantilism lead to industrial revolution?
The discovery of America allowed Britain to raise the mercantilist system to a degree of splendor and glory which it could otherwise never have attained. England's protectionist measures in the triangular Atlantic trade brought about a real boom to its cotton textile production and hence to its industrialization.
What is mercantilism simple?
mercantilism Add to list Share. Mercantilism, also called "commercialism,” is a system in which a country attempts to amass wealth through trade with other countries, exporting more than it imports and increasing stores of gold and precious metals.
How did mercantilism help the colonies?
The mercantile theory held that colonies exist for the economic benefit of the mother country and are useless unless they help to achieve profit. The mother nation should draw raw materials from its possessions and sell them finished goods, with the balance favouring the European country.
What is an example of mercantilism?
An example of mercantilism was the Sugar Act of 1764 which made colonists in America had to pay higher tariffs and duties on imports of foreign-made refined sugar products. Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy.
What was the role of the colonies in the British mercantilist system quizlet?
What was the role of the colonies in the British mercantilist system? The colonies supplied the raw materials to Britain so Britain could resell them to other European countries for a huge profit.
What factors were important to mercantilism?
Mercantilism depended upon a number of factors, first of which was a favorable balance of trade, where the value of exports is greater than the cost of imports, which will ultimately bring more wealth to the host nation. In addition, mercantilism distated that nations should concentrate on producing marketable goods, those that are cash products that maximize national income. In that regard, in The Wealth of Nations, Adam Smith advocated that countries should specialize in products that bring them the highest value. In addition, nations should accumulate silver and gold as bulwarks of national wealth and power.
What is a mercantilism?
Mercantilism—or “State Capitalism”. (Note: The term “state capitalism” may in other areas of economic theory have a meaning different from what is described here: All that is implied for this portion of this course is that Mercantilism was essentially a capitalist system in which the mechanisms of trade were heavily controlled by ...
Why were the Navigation Acts so loosely enforced?
The net result was that the Navigation Acts, although rigorous on paper, were very loosely enforced, and the colonists became habitual offenders and smugglers. In 1675 King Charles the second designated certain Privy Councilors as “Lords of Trade and Plantations” in order to make colonial trade more profitable.
How was the mercantile system controlled?
The mercantile system was controlled through a series of Navigation Acts. The thrust of those Acts was to keep profitable trade under British control in order to bring as much wealth as possible into English pockets. In general the Acts said that insofar as possible, goods shipped to and from English ports must be carried in English ships. Within the Empire (i.e., between the colonies and mother country), foreign vessels were generally excluded. These Navigation Laws were not pointed at the colonists but rather at the Dutch and others who took trade away from the British.
Why were the colonies prohibited from exporting manufactured goods to the mother country?
Conversely, the colonies were often prohibited from exporting manufactured goods to the mother country because they would compete with British manufactures. For a time, Virginia tobacco could be sold only in England, even though the Dutch might pay more for it.
What was Adam Smith's argument against Mercantilism?
Adam Smith’s The Wealth of Nations, published in 1776—a very interesting date in this context—was an argument against Mercantilism and in favor of free-market capitalism.) Mercantilism was a system by which the government deliberately controlled the economic affairs of the state in order to accumulate national wealth.
Why did the Navigation Acts demand that most raw materials be imported into England from the colonies?
The Navigation Acts also demanded that most raw materials be imported into England from the colonies in order to support British manufacturing.
Why did the British put taxes on imported goods?
The British even put taxes called duties on imported goods to discourage this practice . This pushed the colonists to buy only British goods, instead of goods from other European countries. The distance from Britain and the size of the British Empire was an advantage for the colonies.
What was the British colony's economic system?
Mercantilism was a popular economic philosophy in the 17th and 18th centuries. In this system, the British colonies were moneymakers for the mother country. The British put restrictions on how their colonies spent their money so that they could control their economies.
What did smugglers pay to regulate trade in the colonies?
The smugglers would pay bribes to British customs officials who were hired to regulate trade in the colonies. These officials also made a modest salary from the British, so they were benefitting from all sides. The American juries that tried smugglers, in times when they were actually caught, rarely found them guilty.
How did the sugar act affect the colonial trade?
The Navigation Acts and the Sugar Act were two of the laws enacted to restrict colonial trade. Acts like these led to rebellion and corruption in the colonies . Colonists, particularly in New England, rebelled against these acts by illegally smuggling goods in and out of the colonies. Ships from the colonies often loaded their holds with illegal goods from the French, Dutch, and Spanish West Indies. The smugglers would pay bribes to British customs officials who were hired to regulate trade in the colonies. These officials also made a modest salary from the British, so they were benefitting from all sides. The American juries that tried smugglers, in times when they were actually caught, rarely found them guilty. Because they were gaining so much power, smugglers increased their secret trade to almost every port in the colonies. It is estimated that over 700,000 British pounds were brought into the American colonies each year at this time.
Did England tax the colonies?
England continued to tax the colonies. But since trade and taxation were difficult to control from far away, England made an agreement with the colonies. They would continue to regulate trade but allow colonists the right to levy their own taxes.
