MercantilismMercantilism

The European WorldThe European World

What is Mercantilism?What is Mercantilism?

the theory that a country’s power depended mainly on its wealth to build strong navies and purchase vital trade goods

the theory that a country’s power depended mainly on its wealth to build strong navies and purchase vital trade goods

Two Ways to Increase a Nations WealthTwo Ways to Increase a Nations Wealth

obtain as much gold and silver as possible

obtain as much gold and silver as possible

Two Ways to Increase a Nations WealthTwo Ways to Increase a Nations Wealth

obtain as much gold and silver as possible

obtain as much gold and silver as possible

establish a favorable balance of trade, in which it sold more goods than it bought

establish a favorable balance of trade, in which it sold more goods than it bought

Mercantilism ExplainedMercantilism Explained

colonies existed for the benefit of the Mother Country

colonies existed for the benefit of the Mother Country

Mercantilism ExplainedMercantilism Explained

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

Mercantilism ExplainedMercantilism Explained

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

shipped to M.C. to be turned into finished goods

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

shipped to M.C. to be turned into finished goods

Mercantilism ExplainedMercantilism Explained

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

shipped to M.C. to be turned into finished goods

finished goods shipped to Colony = expensive

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

shipped to M.C. to be turned into finished goods

finished goods shipped to Colony = expensive

Mercantilism ExplainedMercantilism Explained

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

shipped to M.C. to be turned into finished goods

finished goods shipped to Colony = expensive

profit goes to M.C.

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

shipped to M.C. to be turned into finished goods

finished goods shipped to Colony = expensive

profit goes to M.C.

Mercantilism ExplainedMercantilism Explained

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

shipped to M.C. to be turned into finished goods

finished goods shipped to Colony = expensive

profit goes to M.C. pass laws forbidding colonies

from producing their own goods

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

shipped to M.C. to be turned into finished goods

finished goods shipped to Colony = expensive

profit goes to M.C. pass laws forbidding colonies

from producing their own goods

Mercantilism ExplainedMercantilism Explained

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

shipped to M.C. to be turned into finished goods

finished goods shipped to Colony = expensive

profit goes to M.C. pass laws forbidding colonies

from producing their own goods

colonies existed for the benefit of the Mother Country

source of Raw materials = cheap

shipped to M.C. to be turned into finished goods

finished goods shipped to Colony = expensive

profit goes to M.C. pass laws forbidding colonies

from producing their own goodsMercantilism = unfair or unbalanced trade

Triangular TradeTriangular Trade

Triangular TradeTriangular Trade

Europeans transported manufactured goods to the west coast of Africa

Europeans transported manufactured goods to the west coast of Africa

Triangular TradeTriangular Trade

Traders then exchanged these goods for captured Africans who were then sold in the the Americas

Traders then exchanged these goods for captured Africans who were then sold in the the Americas

Triangular TradeTriangular Trade

Merchants then bought sugar, coffee, and tobacco in the West Indies and sailed back to Europe to sell these products

Merchants then bought sugar, coffee, and tobacco in the West Indies and sailed back to Europe to sell these products

Triangular TradeTriangular Trade

Long Term ResultsLong Term Results

global trade routes shifted over time the old silk routes declined West Asia and the Islamic world were displaced as

the centralized location of global trade the Atlantic and Pacific sea routes became the new

focus of global trade

global trade routes shifted over time the old silk routes declined West Asia and the Islamic world were displaced as

the centralized location of global trade the Atlantic and Pacific sea routes became the new

focus of global trade

Asian trade routes had dominated global trade prior to 1500s, with West Asia acting as a “middle man” between east and west