Mercantilism and Triangular Trade

What was the primary goal of mercantilism?

• To increase a nation's wealth by imposing government regulation concerning all of the nation's commercial interests.

• To promote free trade and reduce tariffs.

• To establish a global currency system.

• To encourage agricultural development over industrialization.

How does a country maintain a favorable balance of trade?

• By increasing exports and decreasing imports

• By decreasing exports and increasing imports

• By maintaining equal levels of exports and imports

• By focusing solely on domestic trade

What are the four steps England took to make a profit from mercantilism?

• Establishing colonies

• Restricting colonial trade

• Increasing exports over imports

• Accumulating wealth in the form of gold and silver

What restrictions were placed on the colonists by mercantilism?

• Colonists could only trade with the mother country.

• Colonists were free to trade with any country.

• Colonists were required to pay high taxes on all goods.

• Colonists were allowed to manufacture their own goods.

What is salutary neglect?

• A policy of strict enforcement of parliamentary laws

• A policy of relaxed enforcement of regulations in the colonies

• A strategy to increase colonial taxes

• A method to strengthen colonial military forces

The colonists disliked mercantilism because:

• It restricted their trade with other countries.

• It allowed them to trade freely with any nation.

• It provided them with more economic opportunities.

• It reduced taxes on imported goods.

How did colonists violate the policy of mercantilism?

• By trading with countries other than their mother country

• By strictly following the trade regulations

• By increasing imports from the mother country

• By paying higher taxes to the mother country

What economic principle is illustrated in the image below?

• Captialism

• Feudalism

• Socialism

• Mercantilism

Who controls and regulates trade in a mercantilist economy?

• The government

• Tax payers

• Individuals

• Voters

This is a tax on goods brought into a country...

• Mercantilism

• Feudalism

• Tariff

• Market