Mercantilism

1
Mercantilism

• ism a type of system

2
Mercantilism

• Mercantilism is an economic system
• Mercantilism was the economic system used during
  the colonial era.
• Mercantilism
• Trade (imports and exports)
• For a nation to grow economical (wealth) exports
  must be greater than imports.
• Why? Explain
• If more product are sold than bought than gold is
  accumulated for the treasury.
• Sold 200.00 / Bought 100.00 100.00 in gold

3
Navigation Act

• Before the Navigation Act, New England trades
  were some what free to trade freely because
  England had other problems.
• Purpose- to regulate trade between England and
  its colonies
• Only England would benefit from colonial trade
• Colonists must ship certain goods
• Example

4

• Navigation Acts

Ship/ sold Tobacco
Colonies Grow tobacco
England Roll/cut tobacco
Ship back and sold cut/rolled tobacco
Colonist are forced by the Navigation Act to ship
certain goods to England, and they are also
forced to buy back manufactured goods from
England.
5
So what?

• Who benefits in a mercantilist system?
• Who is hurt in the same system?
• If you are living in England, do you favor this
  economic system?
• If you are a New England Colonists, do you have
  the same feelings?