Aim: What was the economic policy of Mercantilism? • Do Now: Define and give the significance of the term, "mercantilism". – What does it mean to you? – Why was it created? – What impacts, consequences, or “mark” did this economic theory leave behind? All are asked to use the blank “Mercantilism” chart to help assist in gaining a better understanding of the term. Please fill in the blanks. –
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Aim: What was the economic policy of Mercantilism? Do Now: Define and give the significance of the term, "mercantilism". –What does it mean to you? –Why.
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Aim: What was the economic policy of Mercantilism?
•Do Now: Define and give the significance of the term, "mercantilism".
– What does it mean to you?
– Why was it created?
– What impacts, consequences, or “mark” did this economic theory leave behind?
All are asked to use the blank “Mercantilism” chart to help assist in gaining a better understanding of the term. Please fill in the blanks.
–
Firstly, what is it?• An economic system• Goals: bullion (precious metals) and be self-
sufficient• Nation tries to maximize exports, minimize
imports (but why?) to achieve a favorable balance of trade (a surplus)
• Maintained through tariffs (taxes on foreign imports)
• A Mother Country might rely on colonies to supply raw materials often through slave labor in exchange for finished goods
• Inhabitants of colonies would receive protection from mother country in return for exclusive trading rights.
What was mercantilism?
MERCANTILISMEconomic theory of how a nation
can become wealthy
Goal: Build up as much wealth [bullion] as you can!!!
In the words of Malcolm X: “By any means necessary.”
How did a nation follow mercantilism?
The theory of Mercantilism offered a step by step plan for a government to
follow
What was step one of mercantilism?
How To Make A Rich and Powerful NationStep #1
EXPORT more than IMPORT
What you sell to other countries
What you buy from other countries
Goal: Have more money coming in than going out = favorable BALANCE OF TRADE
What was step two of mercantilism?
How To Make A Rich and Powerful NationStep #2
Build Colonies
Colonies provide:
Easy access to cash crops
Places to sell items made in your country
Global Hist. & Geo. – June ’07 [16]
Document 4
The Mercantilist Argument for Colonial Expansion
Source: Philip Dorf, Our Early Heritage: Ancient and Medieval History,Oxford Book Company (adapted)
4 According to this cartoon by Philip Dorf, what is one characteristic of mercantilism from the perspective ofthe mother country? [1]