Mercantilism and Colonial Trade

In the 17th and 18th centuries, European nations measured wealth by their silver and gold reserves. England adopted mercantilism, integrating its colonies into a trade system where colonies supplied raw materials, which were transformed into goods in England and sold back to the colonies. This created a closed trade circuit. To ensure wealth flowed to England, colonial trade with foreign powers was restricted, leading to smuggling and conflict with the crown by the next century.

How did European nations in the 17th and 18th centuries measure their wealth?

• By the number of colonies they had

• By the amount of silver and gold in their treasuries

• By the amount of land they owned

• By the size of their armies

What was the primary role of colonial ships under the system of mercantilism?

• To transport manufactured goods to Europe

• To carry raw materials to England

• To explore new territories

• To engage in naval warfare

What did English traders do with the raw materials brought from the colonies?

• They stored them in warehouses

• They used them for building ships

• They sold them to other European nations

• They transformed them into manufactured goods

What was the ideal role of the colonies in the mercantilist system?

• To engage in trade with foreign powers

• To manufacture goods and export them to England

• To become self-sufficient and independent

• To provide raw materials and consume manufactured goods

How did England ensure that money flowed to its treasury from the colonies?

• By encouraging colonists to produce their own goods

• By increasing taxes on colonial goods

• By restricting and sometimes banning colonial trade with foreign powers

• By allowing free trade with foreign powers

What was one of the long-term effects of mercantilism on the relationship between the colonies and the crown?

• It strengthened economic ties with foreign powers

• It led to peaceful negotiations

• It provoked smuggling and violent conflict

• It resulted in increased loyalty to the crown