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What is Mercantilism?

What is Mercantilism?. During the Age of Exploration, newly powerful kingdoms such as Spain, England, and France thought that there was only so much wealth and power in the world. What is Mercantilism?. These kingdoms wanted to get as big a piece of the pie as possible.

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What is Mercantilism?

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  1. What is Mercantilism? • During the Age of Exploration, newly powerful kingdoms such as Spain, England, and France thought that there was only so much wealth and power in the world.

  2. What is Mercantilism? • These kingdoms wanted to get as big a piece of the pie as possible. • In order to increase their piece, they had to decrease their rivals pieces

  3. What is Mercantilism? • Mercantilism: Is a protective trade policy in which the colonies are forced to supply their Motherland (and only the Motherland) with raw materials, which it will turn into manufactured goods. The colonies are then forced to buy the Motherland’s (and only the Motherland’s) manufactured goods.

  4. Vocabulary • Colony: a settlement in the New World setup by a European kingdom. • Motherland: The European kingdom which setup the given colony. • Raw Materials: Materials taken from nature and used to manufacture goods (crops, leather, wood, metal). • Manufactured Goods: Raw materials that have been processed in factories to be useful products (clothes, guns, ships, plows, etc.).

  5. Mercantilism4 Main Goals • Encourage growth country’s shipping • Protect country’s manufacturers from foreign competition. • Protect country’s farmers, especially grain farmers. • Get as much hard money as possible. (Colonial money was worthless in England, merchants wanted Gold!) • Favorable Balance of Trade: Sell more to your rivals than you buy from them!

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