Henry VII & Economic Development

Question 1

How did Henry improve trade?

Answer 1

• The Navigation Acts
• decreasing the raw wool trade
• increasing England’s cloth exports
• increasing England’s Mediterranean trade

Question 2

What were the Navigation Acts?

Answer 2

• 1485-86
• said no English merchants were to use foreign ships to transport goods if an English ship were available
• encouraged English shipbuilding and saved the expense of hiring foreign ships to carry English goods
• Saving costs = increased profits = increased customs revenues

Question 3

How did Henry decrease the raw wool trade?

Answer 3

In 1489, Henry VII limited the export of English raw wool and made it illegal for foreigners to buy English raw wool for use on the continent

Question 4

How did Henry increase cloth exports?

Answer 4

• In 1496 Henry VII signed the Intercursus Magnus treaty with Burgundy
• allowed English merchants to trade freely throughout Burgundy, except in Flanders
• this was because Henry believed Burgundy was England’s gateway to trade with the continent

Question 5

How and why did Henry increase Mediterranean trade?

Answer 5

• Venice dominated the Mediterranean. It taxed English merchants trading there heavily
• In 1490, Henry VII cut exports of English wool to Venice but increased them to its rival, Florence
• Venice cut the taxes on English merchants trading in the Mediterranean

Question 6

How far were the economic successes of trade?

Answer 6

• Historians argue Henry was incoherent and was an opportunist
• English cloth exports were over 60%
• raw wool exports were down to 30%
• 50% of England’s exports were still carried in foreign ships
• England’s trade was still very small compared with the Hanseatic League, Venice and Spain

Question 7

What kind of economy did Henry inherit?

Answer 7

• weak economy
• due to the War of the Roses

Question 8

Why was the weak economy a worry to Henry?

Answer 8

the economy was vulnerable, England could be damaged by poor harvests or outbreaks of disease

Question 9

What was enclosure?

Answer 9

agricultural land which was once common (available to any farmer) was now exclusively owned

Question 10

What were the pros and cons of enclosure?

Answer 10

Pro: Farmers could work on a larger scale and try new farming techniques, which led to an increase in production and greater profitability
Con: meant many poor farmers lost their land and livelihood and were forced to move elsewhere