MERCANTILISM - Social Studies - I can summarize the economic policy of mercantilism.

___________ are critical to mercantilism. They provide _______________ raw materials and natural resources Raw materials are things like iron ore, coal, lumber, crude oil, etc.

Colonies inexpensive

______________ were important to mercantilism because they provided mother countries with inexpensive raw materials. They also served as __________ for finished goods. Mother countries would control trade with their colonies through ______ and ________.

Colonies markets laws and taxes

Using your notes above, describe mercantilism in at least 2 complete sentences. Then, describe why colonies were important to countries and to the system of mercantilism, in at least 2 complete sentences.

Mercantilism was a system of trade in which European countries tried to get as much gold and silver as they could by trading with others. The idea was to have more exports than imports so a profit could be made. Colonies provided cheap raw materials like iron, ore, coal, lumber, etc to the mother country. The mother country required that colonies only trade with them. So basically, a country wants to get rich. When they are rich they get power. In order to get rich, they want to control trade and have it be favorable. In other words, they want to sell more than they buy so they can make a good profit. They made colonies buy from them.

__________ pursued the goal of making a nation more powerful by selling goods in exchange for ______ and _______.

Traders gold and silver

True or False - A balance of trade is favorable when there are fewer imports and more exports.

True

Economic changes in Europe led to the development of c______________.

capitalism

goods or services sold to another country (selling)

exports

The economies of Europe moved from being land based (the ___________ system) to something more complex, ______________

feudal mercantilism

The system where lords rule over lands that are worked by serfs

feudal system

Mercantilism is about building supplies of _______ and _______, and this means building _________ for the mother country. Countries want to make a _________ when trading.

gold and silver wealth profit

A mother country sells colonies manufactured ___________, the colonies provide the mother country with gold, silver, fur, lumber, food stuffs, etc.

goods

goods or services brought into a country to sell (buying)

imports

European nations embraced the concept of m_________________.

mercantilism

developed because of needed changes in the ways of doing business. As global trade increased, this developed as a way to increase wealth in order to expand the power of individual countries.

mercantilism

key points 1. Colonies are critical to ________________. 2. Governments want to control __________. 3. There was a __________ class.

mercantilism trade merchant

"A new theory of national economic policy called ______________ also appeared. This theory held that a state's power depended on its __________. Accordingly, the goal of every nation was to become as ________ as possible."

mercantilism wealth wealthy

People who had to earn money to live (merchant traders, small business owners, lawyers) compared to people born into money/land

merchant class

Growth in international trade resulted from: Improved ______________ techniques "Discovery" and ___________ of the New World A growing ___________ (middle) class

navigational colonization merchant

The voyages of discovery started a global exchange of p____________, g___________, and i__________.

people, goods, ideas

Under mercantilism, wealth is equal to __________.

power

How were colonies important? They provide a market for finished __________ made in Europe. How did European nations control trade with their colonies? 1. Requiring that their colonies only trade with their ________ country 2. Placing ___________ (taxes) on goods imported from other nations

products mother tariffs

"The exchange of ___________ between European countries and their colonies changed economic relations around the world. European countries saw their colonies as a way to get _______.

products rich

Newly founded colonies provided _____ materials for the mother country to use in making other products. The mother country would then sell these goods back to the _____________ - which were not allowed to trade with other nations.

raw colonies

Under mercantilism, governments want to control and regulate _________ to create a favorable balance of trade They want the value of their exports to be _________ than the value of their imports

trade greater

Mercantilists encouraged lawmakers to adopt policies that would regulate _________ in order to increase a nation's ____________. Imports were ____________ to keep them out and to increase the domestic (home) markets.

trade wealth taxed

Mercantilism is a system to build a country's __________, specifically their supplies of gold and silver. In mercantilism, a country's _________ is tied to its wealth. In mercantilism, a country's government wants control __________ to create a favorable balance of trade. This means having a greater value of _________ than imports (selling more than you buy)

wealth power trade exports