Chapter 5: Triangular Trade, Mercantilism, and Capitalism

Chattel Slavery

Slaves viewed as property, lacking legal rights. Children of slaves “belonged” to owner.

Trans-Atlantic Slave Trade

Trade of slaves from Africa to Americas (New World) in exchange for European manufactured goods.

Slave Demand

By 1540, 10,000 slaves shipped annually.

Triangular Trade

Exchange of goods and slaves between Europe, Africa, and the NW.

Cash Crops

Tobacco, sugar, and cotton relied on slave labor and earned money quickly.

Middle Passage

Voyage transporting slaves from Africa to Americas.

Slave Auctions

Slaves sold to highest bidder upon arrival.

Slave Procurement

Captives often from tribal wars or raids.

Cape Coast Castle

Fort used for holding captured Africans.

Plantation Economy

European plantations required cheap labor for crops.

Roles of European Goods in the triangular trade.

Used to purchase slaves from African traders.

African Chiefs role in the triangular trade

Sold captives to European merchants for goods.

Legacy of Globalization

Contemporary society must address historical injustices.

Economic Motivation

Slave trade driven by profit from labor-intensive crops.

Mercantilism

Economic policy using colonies for national wealth.

Favourable Balance of Trade

Exporting more than importing for economic gain.

Trade Surplus

Excess of exports over imports.

Economic Self-Sufficiency

Nation's ability to produce its own goods.

Colonial Benefits

Colonies provide cheap raw materials for the mother country.

Captive Market

Colonies restricted to buying home country goods.

Demise of Mercantilism

Resistance to mercantilism led to economic changes. Book “Wealth of Nations” and American Revolution contributed to the decline of mercantilist policies, promoting free trade and capitalism.

Adam Smith

Scottish economist advocating for capitalism over mercantilism. Author of “Wealth of Nations”.

Wealth of Nations

Smith's 1776 book opposing government-controlled wealth.

Basic Capitalist Principles

Goods produced for profit through individual self-interest.

Supply and Demand

Market forces determining prices of goods.

Competition

Market rivalry increasing efficiency and innovation.

Invisible Hand

Self-regulating nature of free markets.

Laissez Faire

Government non-interference in economic activities.

Consumer Protection

Market principles safeguarding consumer interests.