Trade

what is mercantilism

• colonies used to obtain goods from afar without having to send gold to other countries, forced to export back to england

• controls on imports from other countries to prevent gold leaving country

reasons for navigation acts

• based on mercantilist principles to keep england’s wealth in its own hands

• embargoes were ended and british companies couldn’t compete against more competitive dutch ones

terms of navigation acts

1660- crews had to be 3/4 english, only english ships can trade goods between england and colonies

1663- all colonies had to buy manufactured goods from britain and had to send goods to england to be taxed

1673- banned trading raw materials directly between colonies

impacts of navigation acts

• although generally obeyed, some smuggling, especially after defeat in 2nd anglo dutch war

• navy grew dramatically in size

• resented in american colonies and may have caused american revolution

• economically damaging as based on principle that there is limited amount of wealth when trade could actually increase wealth

slave trade

• late 16th century, trade in africans began, merchants would capture and take to trade in america, initially small scale

• colonies grew after the restoration so demand for slaves grew

• RAC goo en exclusive rights to trade in west africa, profits split 50/50 between company and charles

• RAC was intended to trade along west of africa but soon turned to slavery earn it received a new royal charter

• in 1680s, company was transporting around 5,000 slaves a year

economic impacts of slavery

bankers- increased demand for long voyages meant merchants needed to borrow money, giving bankers money

ports- half of slave ships came form liverpool making it one of most important ports

plantation owners- high profits as cost of labour cheaper

ordinary people- created lots of jobs due to making weapons to sell to slave owners

slave ships owners- could make up to 50% profit

cultural impacts of slavery

• sugar became widely

• coffee houses developed form these new ports

• elaborate houses built on the new land in america