Mercantilism

Mercantilism

________- was the new economic theory for how trading nations could earn wealth.

Step 1

Export more than you Import

Mother countries sought to create a more favorable balance of trade

  the value of the exports is more than the value of the imports

Step 2

  Build Colonies

Step 3

  High Tariffs on Imports (taxes)

Countries charged expensive tariffs on

products made in rival countries.

Colonies were critical because they provided the Mother Country

inexpensive raw materials and resources, and then the Mother Country could turn around and sell the finished products back to the colonies for a profit.

Mother countries sought to create

a more favorable balance of trade: the value of the exports is more than the value of the imports.

Mercantilism =

Growth of International Trade + Colonization in the New World + Growing Merchant Class

Some gained bullion by

taking over gold and silver mines but most achieved this through trade.