Mercantilism and Its Impact on American Colonists

Navigation Acts

A series of laws passed by Great Britain that helped support the economic theory of Mercantilism.

Second Impact of Navigation Acts

All American goods had to pass through English ports, England charged taxes on the things traded in their ports. This cost the merchants more money.

First Impact of Navigation Acts

England was the only country most colonial merchants were allowed to trade with. So if another country offered more money for a merchant's cotton that was too bad. Merchants would have to take the lower price offered by England. This cost merchants money.

Mercantilism

Mercantilism was an economic system used in the 1600s and 1700s by European countries. Under mercantilism, a country tried to control its imports and exports to create wealth. According to the theory of mercantilism, if a country exported more than it imported, it got wealthier.

Third Impact of Navigation Acts

The colonists were required to import goods only from England, even if these goods were cheaper when imported from other countries. This caused the imports to be more expensive for American consumers.