Turn to page 11 in your ISN and answer the following questions

1. Turn to page 11 in your ISN and answer the following questions • As trade with Europe and the colonies in America was established, what were some things that the wealthy entrepreneurs would need? • Where would they produce their items that they were trading? • What do you think existed between the end of the farm-centric era and the dawn of the age of factories?

2. Mercantilism • Who: European Countries • What: economic theory -- nation should export more than imports to maintain and increase wealth • How: • import raw materials, export finished goods • strictly regulate business (guild restrictions) • limit amount of materials a worker could make in a day • Tightly regulate when items could be bought and sold (Fish Friday) • When: 1600’s • Why: Kept control of $$ and resources in the hands of the wealthy few and the government and the guilds • Problem: Greatly limited expansion and growth; producers were limited, consumers were limited, economy stagnated

4. What: By 18th century, guilds had lost their power, and as the wealthy became wealthier, demand for new products increased • Why: With new demand for finished goods, Merchants responded by recognizing that a supply of products that would be in demand would be profitable • Where: Primarily England (British Isles) • How: Merchants acted as coordinators between producers and consumers • Merchants would purchase large amounts of raw materials (like cotton or wool) • Supply these materials to rural carders* • Combed the fibers to prepare them for spinning • The combed fibers were then sent to rural spinners • Spun into thread and yarn • Merchants would take the thread or yarn to rural weavers • Weave into cloth • Cloth taken to workers who would bleach or dye it • Merchants would take finished cloth and sell it to consumers

5. Cottage Industry • Merchants used their profits to purchase more materials which allowed cycle to continue