The Economic Impact of Mercantilism on European Power and Colonies

The video explains mercantilism, an economic system used by European countries in the 15-1700s, where wealth was measured by gold and silver accumulation. Countries aimed for a favorable trade balance, exporting more than importing. Colonies provided raw materials and markets for manufactured goods. European laws controlled trade, ensuring profits. Mercantilism viewed wealth as zero sum, unlike today's positive sum trade. Colonization negatively impacted native populations through disease and displacement.

What was the primary goal of mercantilism for European countries?

• To accumulate as much gold and silver as possible

• To establish democratic governments

• To develop advanced technology

• To promote free trade among nations

How did colonies contribute to the wealth of European countries under mercantilism?

• By providing military support

• By supplying raw materials and serving as markets for manufactured goods

• By developing their own independent economies

• By forming alliances with other colonies

In the grocery store analogy, why couldn't European colonies trade directly with each other?

• They were too far apart geographically

• They had no interest in trading

• They were prohibited by European laws

• They lacked the necessary resources

What is the difference between zero-sum and positive-sum views of trade?

• Zero-sum means both sides gain, positive-sum means one side loses

• Zero-sum means one side gains at the expense of the other, positive-sum means both sides can gain

• Zero-sum means no one gains, positive-sum means everyone loses

• Zero-sum means trade is impossible, positive-sum means trade is easy

Which group was most negatively affected by the establishment of colonies under mercantilism?

• European monarchs

• European merchants

• Colonial governors

• Native populations