Mercantilism

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MercantilismThe Triangular Trade
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Mercantilism

• A nations economic strength came from protecting
  and increasing its home economy by making and
  keeping strict control over its colonies and
  keeping a favorable balance of trade with them.

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Mercantilism

• Theory guided England and most European nations
  during the 17th and 18th centuries.
• More gold coming into a nation than going out
  made a nation powerful.
• England saw the American colonies to be an
  economic resource.
• England had to export (sell abroad) more goods
  than it imported (bought from foreign markets).
  Favorable balance of trade.
• Colonies were created to be a constant source of
  raw materials and become profitable markets for
  the manufactured goods to the country that owned
  them (the Mother Country).

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Mercantilism
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Navigation Acts

• To control trade from the colonies, England
  passed a number of laws between 1650-1767 known
  as the Navigation Acts.
• These trade laws were extremely restrictive
  (one-sided).
• Colonists could only conduct business on English
  or colonial-made ships.
• To trade with another country all goods had to be
  sent to England first so that they could be
  taxed.
• Tobacco, sugar, timber and cotton could only be
  traded with England.

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Navigation Acts

• Colonies were not allowed to create their own
  factories so that England could control
  trade/business.
• Trade regulations were not rigidly enforced for
  decades.
• Colonies become a safe haven for smugglers and
  pirates

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The Triangular Trade
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The Triangular Trade

• Triangular Trade a pattern of colonial trade
  where slaves were purchased on the African Gold
  Coast with New England rum then sold in the West
  Indies for molasses or sugar which was then sent
  back to New England to manufacture rum.

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The Triangular Trade

• Salutary Neglect term used to describe how the
  English neglected to enforce the Navigation Acts.
• This neglect leads the colonies to enjoy a
  sense of free trade.
• In 1763 England begins to enforce these laws that
  will cause the colonies to protest harshly. One
  of the many conflicts with England that will lead
  to American independence.