Mercantilism: Key Concepts, Historical Impact, and Colonial Effects

What was the impact of mercantilism on colonial economies?

Colonial economies were restricted, benefiting only the imperial power while limiting local trade.

What did mercantilism prioritize in terms of trade?

National interests, often at the expense of colonial autonomy and economic development.

How did mercantilism contribute to the American Revolution?

By restricting colonial trade and benefiting only the mother country, it fostered resentment and desire for independence.

What is mercantilism?

An economic system of trade developed in the 16th century, emphasizing the regulation of trade to increase a nation's wealth, particularly gold and silver.

When did mercantilism become prominent?

In the 1600s, with a decline beginning in the early 1800s.

What is the core belief of mercantilism regarding wealth?

The world has a static supply of wealth, particularly gold and silver, which nations should strive to accumulate.

What strategy did mercantilist nations use to maintain wealth?

They aimed to increase exports and reduce imports, often through tariffs and military might.

How did mercantilism influence colonialism?

It encouraged the establishment of colonies to extract resources and limit trade with rival nations.

What is the 'triangle of trade' in the context of mercantilism?

A system where the mother country benefits from trade within its empire, restricting colonies from trading directly with other nations.

What was the purpose of the Navigation Acts in England?

To enforce trade patterns that required colonies to trade exclusively with England.

What was a key economic requirement for a mercantilist nation?

Maintaining a healthy trade surplus by exporting more than importing.

Why was a large population important in mercantilism?

To provide a labor force for domestic industry and to support a significant military.

What tension arose in Britain due to mercantilist policies?

The conflict between protecting British farmers and the need for cheap food imports for a growing population.

What legislation did Robert Peel's government introduce in the 1840s?

Legislation to repeal the Corn Laws and Navigation Acts to open Britain to free trade.

What was the outcome of repealing the Corn Laws?

It led to lower food prices and reduced hunger in Britain.

Who criticized mercantilism and what was their argument?

Adam Smith criticized it, arguing that wealth could be generated through mutual trade benefits rather than hoarding resources.

What economic theory emerged as a critique of mercantilism?

Classical economics, which emphasized free trade and mutual benefit in trade agreements.

What role did military might play in mercantilism?

It was used to protect local markets and acquire resources necessary for the nation's economy.

Which European countries were the most ardent users of mercantilism?

England, France, the Netherlands, and Spain.

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