Mercantilism

1
Mercantilism

• Initially, European expansionism was motivated by
  the desire to find gold and silver
• Soon after, however, they realized that there
  were other resources in the Americas that could
  be exploited for profit
• Fish and fur
• Fish and fur became colonial Canadas staple
  (ie. the products that they exploited the most)

2
Mercantilism

• The purpose of the mercantile system (a.k.a.
  mercantilism) was to generate as much wealth
  for the mother country (the heartland) by taking
  resources from the colony (the hinterland)
• The goal is to export more from the colony than
  you import, so that you make more money
• Colonies would serve as suppliers of raw goods
• The mother country would use these materials to
  make a product, and this product would then be
  sold to generate income for the mother country

3
Mercantilism

• Through triangular trade between continents,
  Europe was able to
• obtain a free labour force by kidnapping Africans
  to use as slaves
• Take resources from their colonies
• Sell/trade manufactured goods back to their
  colonies
• (See p. 27)
• This helped the Europeans to expand and become
  even wealthier in the early process of
  globalization

4
Mercantilism

• Europes worldwide distribution of the Americas
  resources changed the global economy
• The European mercantile economy brought
  tremendous wealth into Europe
• In 1500, Europes gold and silver repositories
  totalled 200 million
• By 1600, it totalled 1.6 billion
• The trade routes to Asia and Africa were
  essentially forgotten now that there was so much
  money to be made from the Americas
• Europe emerged as a capitalist superpower,
  controlling all global trade

5
Mercantilism

• European societies entered into a constantly
  upward spiral of economic growth and enhanced
  military effectiveness which, over time, was to
  carry them ahead of all other regions of the
  globe
• Paul Kennedy, historian
• Compare the economic state of Europe prior to
  contact to the economic state of Europe after
  contact. How did western Europe manage to change
  into the global trading power?