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British Mercantilism

British Mercantilism. A Path to Colonial Economic Opportunity. Economic Theory of Mercantilism. The prosperity of a nation is dependent upon its supply of capital, and that of the global volume of international trade is “unchangeable”.

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British Mercantilism

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  1. British Mercantilism A Path to Colonial Economic Opportunity

  2. Economic Theory of Mercantilism • The prosperity of a nation is dependent upon its supply of capital, and that of the global volume of international trade is “unchangeable”. • The ruling government should advance these goals by playing a protectionist role in the economy. • Encouraging exports • Discouraging imports: through the use of tariffs & subsidies.

  3. Navigation Acts • A series of laws which restricted the use of foreign shipping for trade between England and its colonies. • All goods bound for America must pass through either England or Wales; where it was unloaded, inspected, taxed, and reloaded on British ships for transport.

  4. “Enumerated Commodities” • These imports were sugar, rice, & tobacco, and they had to be landed & pay tax before going to other countries. • The results were: • Increased costs to the colonists • Increased shipping time

  5. Woolen Act of 1699 • Attempted to heighten and increase control over colonial trade and production • Prohibited the export of wool from America which included: wool, wool yarn, and wool cloth to markets outside the colonies. • Prohibited the import of woolens and linens created in other areas of the British Empire. • Forced all wool to be sold in British markets, and then resold to British citizens in all areas of the empire. • Each sale generated taxes.

  6. Molasses Act of 1733 • Tax of 6 pence/gallon on molasses from non-British colonies. Passed at the insistence of large plantation owners in the British West Indies. • New England & Middle colonies had a large trade system with the French, Dutch, & Spanish West Indies possessions. • Not instituted to generate revenue, but rather to control trade.

  7. The Hat Act of 1733 • To control hat production of the Americans. • Placed limits on the manufacture, sale, and exportation of American hats. • Restricted hiring practices, by limiting the number of workers that hat-makers could employ, & placed limits on the number of apprenticeships (2). • Americans were forced to buy British-made goods, causing them to pay 4 times as much for hats & cloth imported from Britain than for local goods.

  8. The Iron Act of 1750 • To restrict manufacturing, particularly in North America, and to encourage manufacturing in Great Britain. • America was the 3rd largest exporter of iron in the world. • If this act had been enforced, it would have severely limited manufacturing in the colonies. • Was designed to direct most American trade to Britain & to encourage the manufacture of goods for export to the colonies in Britain.

  9. Results of These Acts • Until 1763, these acts were not enforced. • Although not enforced, they created resentment in the colonists. • They were attempts of the King & Parliament to show the colonists who was “boss”. • Eventually, these acts and others would lead to the cry of “taxation without representation”, which would lead to the American Revolution.

  10. Triangular Trade

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