empire- trade Flashcards
withey
what are the three trade periods
mercantilism, free trade, protetionism
what is mercantilism
a closed economic trade system, where trade was kept to a minimum
whats the priority of mercantilism
to export more than you import
what were advantages of mercantilism
the British upper classes grew more wealthy and powerful
the introduction of insurance
what was a disadvantage of mercantilism
after the 7 years war Britain were in a lot of debt, mercantilism was not solving this
mr withey’s cake analysis
the bigger slice of cake you have, the less someone else has
what was the foundation of mercantilism
laws such as the navigation act, the corn laws and the sugar tax
what was the navigation act
only British ships could carry British goods in to British ports
when were the navigation acts
1651
what was the impact of the navigation act for Britain
stimulate the construction of a British merchant navy and generate taxes paid by the boats any time they docked in the ports. this stimulates the navy
what were the corn laws
high and expensive tariffs to import grain even when domestic supplies were low
when were the corn laws
1815
who was responsible for the movement from mercantilism to free trade
Adam Smith
who was adam smith
a middle class economist who wrote the wealth of nations
what were smith’s four principle ideas
specialisation, consumer capitalism, how to treat the rich, educate consumers
what is specialisation
efficiency makes more money (the pin lesson)
what is consumer capitalism
look after the consumers
how did smith recommend to treat the rich
with resect and that they are above you
what is smith’s invisible hand
the belief that selfish people make selfless people
why was adam’s smith work revolutionary
enhanced the economy, mercantilism to free trade
why did americans like smith’s ideas
rising against British ruling classes
