Economic Development and Mercantilism - AP European History
- Which economic policy dominated European thought in the 16th-18th centuries?
- Mercantilism. Mercantilism shaped European economic policy for three centuries.
- Identify the primary goal of mercantilist policies.
- To achieve a favorable balance of trade. Export surpluses were seen as the key to national prosperity.
- What was the impact of mercantilism on indigenous populations?
- Exploitation and disruption of local economies. Mercantilist extraction often devastated native economic structures.
- Identify one key feature of mercantilism.
- Colonies supply raw materials to the mother country. This colonial relationship ensured mother countries had cheap inputs.
- What did mercantilists believe about the world's wealth?
- It was finite and needed to be accumulated. This zero-sum view justified aggressive trade competition between nations.
- Which economic theory supplanted mercantilism in the 18th century?
- Liberalism. Free trade theories challenged mercantilism's state intervention focus.
- What is mercantilism?
- An economic policy aimed at maximizing exports and minimizing imports. This policy sought to create trade surpluses to strengthen national power.
- Which term describes government grants for specific economic activities?
- Subsidies. Government financial support promoted favored industries and exports.
- What economic concept is illustrated by a nation exporting more than importing?
- Trade surplus. Export surpluses demonstrated successful mercantilist implementation.
- Which group of people benefitted most from mercantilism?
- Wealthy merchants and the state. These groups gained from restricted competition and colonial trade.
- Identify the economic system that encourages colonial expansion.
- Mercantilism. Colonies were essential for implementing mercantilist trade strategies.
- What was the purpose of the East India Company?
- To manage trade between England and the East Indies. This chartered company controlled lucrative Asian trade routes.
- Name one economic effect of mercantilism.
- Increased national wealth through trade balance. Positive trade balances accumulated precious metals and strengthened states.
- Which empire became a model of mercantilism through its global trade network?
- British Empire. British colonies and trade networks exemplified mercantilist success.
- What role did chartered companies play in mercantilism?
- Controlled trade and colonial ventures. These monopolies implemented state-directed trade policies abroad.
- Identify one criticism of mercantilism.
- It leads to colonial exploitation. Mercantilist policies often harmed colonial populations and economies.
- What was the impact of mercantilism on European colonial powers?
- Increased wealth and political power. Trade surpluses translated into military and diplomatic advantages.
- What was the main goal of the French economic policy under Colbert?
- To strengthen the economy through mercantilism. Colbert's policies aimed to make France economically self-sufficient.
- What is bullionism?
- An economic theory that wealth is based on the accumulation of gold and silver. This theory equated national wealth with specie accumulation.
- Which monarch implemented mercantilist policies in France?
- Louis XIV. The Sun King actively promoted French manufacturing and trade.
- Which law required American colonies to trade primarily with England?
- Navigation Acts. These laws enforced colonial dependence on the mother country.
- Identify a non-tariff barrier used in mercantilism.
- Import quotas. Quantity restrictions complemented tariffs in protecting domestic markets.
- Identify one strategy mercantilists used to protect domestic industries.
- High tariffs on imports. Import duties shielded local producers from foreign competition.
- What was the Navigation Act of 1651?
- A law to restrict colonial trade to English ships. This protectionist measure strengthened English shipping dominance.
- Which economic policy limits imports through tariffs and quotas?
- Protectionism. Trade barriers protected domestic industries from foreign competition.
- What was one effect of mercantilism on European economies?
- Increased state intervention in trade. Governments actively managed commerce to achieve national objectives.
- Which nation was the leading mercantile power in 17th century Europe?
- The Netherlands. Dutch dominance stemmed from superior shipping and financial systems.
- Which economic system emphasizes national self-sufficiency?
- Mercantilism. Reduced dependence on foreign goods was a key mercantilist goal.
- What is a balance of trade?
- The difference in value between a country's imports and exports. This metric determined whether nations gained or lost wealth through trade.
- What is the key difference between mercantilism and capitalism?
- Mercantilism is state-controlled; capitalism is market-driven. Government control versus free market mechanisms distinguished these systems.
- What was one economic justification for colonial expansion?
- Need for raw materials and new markets. Economic motives drove European imperial expansion and colonization.
- What is the primary measure of wealth in mercantilism?
- Accumulation of gold and silver. Precious metals were considered the foundation of national strength.
- What role did colonies play in mercantilism?
- Sources of raw materials and markets for exports. Colonies provided controlled supply chains for mercantilist empires.
- What was one negative effect of mercantilism on trade relations?
- Increased international tensions. Competition for trade dominance created conflicts between European powers.