Changing Nature of Trade

Question 1

When did the Seven Years War end

Answer 1

1763

Question 2

what does Pyrrhic Victory mean

Answer 2

winning, but at what cost?

Question 3

Why was the British Victory of the Seven Years war Pyrrhic?

Answer 3

• the British economy was almost bankrupt
• British had more land to defend as they gained land from France in America

Question 4

What was the Adoption of ‘Free Trade’?

Answer 4

relying less on trade and tariff barriers

Question 5

what is a trade surplus

Answer 5

value of exports are larger than the value of imports

Question 5

when were the Navigation Acts passed?

Answer 5

1651-1673

Question 5

What does Protectionism mean

Answer 5

imposing a trade barrier, taxing and putting tariff’s on imported goods

Question 5

What was Free trade transitioning from?

Answer 5

protectionism and mercantilism

Question 5

What does Mercantilism mean

Answer 5

• economic theory
• British saw trade as self beneficial
• advocated for a trade surplus

Question 5

What did the Navigation Acts do?

Answer 5

allowed the British Empire to maintain protectionism and mercantilism
- promoted self sufficiency
- restricted colonial trade to England
- prevented colonies establishing independent important trade

Question 5

How did The Royal Navy benefit Trade

Answer 5

• as the RN acquired trade routes they were able to expand and develop trade around the world

Question 5

What is ‘free trade’?

Answer 5

• an alternative system to mercantilism
• import and export taxes are minimised
• removal of restrictions favours merchants who can provide cheapest goods but risks others out of business