Mercantilism In The Colonies

Question 0

Navigation Acts

Answer 0

• 1651 Parliament restricts colonial trade
• all trade on British colonial built ships: boom in the industry: creation of more jobs
• enumerated (valuable and limits on colonial manufacture): tobacco, sugar, lumber, rice

Question 1

Mercantilism

Answer 1

• self-sufficiency
• competition for gold and silver
• gov’t controls trade of the colonies in order to increase its wealth and power
• value of exports > value of imports
• favorable balance of trade for mother country
• receives raw materials from colonies; sells them finished goods

Question 2

Salutary Neglect

Answer 2

• evasion of Navigation Acts
• England loosens reigns for continued economic loyalty
• strengthens the acts with admiralty courts and advisory board
• as long as colonists do their jobs…no hassle

Question 3

Seeds of Government

Answer 3

• governor elected by King
• local assembly by colonists
• colonial assembly pays governor!
• however during this time colonists thought of themselves as British

Question 4

Benefits of Mercantilism for Colonies

Answer 4

• no inflation (no gold and silver)
• goods sold cheaply than it takes to make because of shortage of labor
• protection from empire
• 90% farmers so they were self sufficient

Question 5

Drawbacks of Mercantilism

Answer 5

• unfavorable balance of trade
• violate rights (produce for mother country before for oneself)
• only one market/price
• dependency on mother country (cannot establish industries)