Mercantilism

Question 1

What is Mercantilism?

Answer 1

The idea is that wealth is power and the key to power is to export more than you import.

Question 2

What do nations get richer in?

Answer 2

Silver and Gold

Question 3

Where do nations from Europe need to settle in to get raw materials for manufacturing?

Answer 3

Colonies in North America

Question 4

What were the Navigation Acts and when were they established?

Answer 4

1660

• no country could trade with colonies unless goods were shipped in colonial or English ships
• all vessels had to be in control of at least 75% English
• colonies could export things only to England
• all goods traded between colonies and Europe had to go through England for tax

Question 5

How did Mercantilism work between England and the colonies?

Answer 5

The colonies gave raw materials to England for very low prices, and England would make manufactured goods out of the raw materials and force the colonists to buy them for unreasonably high prices.

Question 6

What was the development of a market economy?

Answer 6

The colonists started making their own choices.

Question 7

What is Capitalism?

Answer 7

The mother country cannot take your resources.

Question 8

What are the principles of Mercantilism?

Answer 8

• get as much gold and silver as you can
• export more than you import
• taxing items decreases import cost
• settle as many colonies as you can
• make colonies trade with mother country only
• don’t allow colonies to do their own thing