What is the main rule of mercantilism?
Export more than you import
An economic policy under which nations sought to increase their wealth and power by obtaining large amounts of gold and silver and by selling more goods than they bought
mercantilism
What is the colonies' role in mercantilism?
provide raw materials (so mother country does not have to import from other nations) and markets for exports
a system in which individual buyers and sellers interact in the marketplace to exchange goods and services.
Market economy
What are the Navigation Acts?
a series of laws restricting colonial trade
what role did mercantilism play with the colonies?
The mother country would colonize overseas lands and make them export the materials that could not be made at home
What are the principles of mercantilism?
Gain as much gold and silver as possible.
Export more than you import.
Tax items it decreases your import cost
Settle as many colonies as you can
Allow colonies to trade with the mother country only.
Don't let the colonies make their own finished goods.
Did the colonies find mercantilism insulting?
yes
A good or service shipped out/ sold
export
a good or service shipped in/bought
import
Poor people got richer and moved on up through participation in the market economy.
Middle class
Production for a profit! You own resources privately. Mother country has nothing to do with it.
capitalism
In capitalism what were people allowed to do on their own without the government?
Own property
Make goods
Buy goods
Sell goods
How did the economy move from mercantilism to capitalism?
Merchants and ship owners took the risks and enjoyed the profits of trade around the world.
How was capitalism created in a nutshell?
Mercantilism, Rise of merchants and economic trade and rise of the middle class, capitalism