All flashcards
Flashcard 1: Identify one strategy mercantilists used to protect domestic industries.
Answer: High tariffs on imports. Import duties shielded local producers from foreign competition.
Flashcard 2: What was the impact of mercantilism on indigenous populations?
Answer: Exploitation and disruption of local economies. Mercantilist extraction often devastated native economic structures.
Flashcard 3: What is the key difference between mercantilism and capitalism?
Answer: Mercantilism is state-controlled; capitalism is market-driven. Government control versus free market mechanisms distinguished these systems.
Flashcard 4: What was the impact of mercantilism on European colonial powers?
Answer: Increased wealth and political power. Trade surpluses translated into military and diplomatic advantages.
Flashcard 5: Identify the economic system that encourages colonial expansion.
Answer: Mercantilism. Colonies were essential for implementing mercantilist trade strategies.
Flashcard 6: Which economic policy dominated European thought in the 16th-18th centuries?
Answer: Mercantilism. Mercantilism shaped European economic policy for three centuries.
Flashcard 7: What was the purpose of the East India Company?
Answer: To manage trade between England and the East Indies. This chartered company controlled lucrative Asian trade routes.
Flashcard 8: What was the Navigation Act of 1651?
Answer: A law to restrict colonial trade to English ships. This protectionist measure strengthened English shipping dominance.
Flashcard 9: What role did colonies play in mercantilism?
Answer: Sources of raw materials and markets for exports. Colonies provided controlled supply chains for mercantilist empires.
Flashcard 10: Identify the primary goal of mercantilist policies.
Answer: To achieve a favorable balance of trade. Export surpluses were seen as the key to national prosperity.
Flashcard 11: Which economic policy limits imports through tariffs and quotas?
Answer: Protectionism. Trade barriers protected domestic industries from foreign competition.
Flashcard 12: Name one economic effect of mercantilism.
Answer: Increased national wealth through trade balance. Positive trade balances accumulated precious metals and strengthened states.
Flashcard 13: Which law required American colonies to trade primarily with England?
Answer: Navigation Acts. These laws enforced colonial dependence on the mother country.
Flashcard 14: What is bullionism?
Answer: An economic theory that wealth is based on the accumulation of gold and silver. This theory equated national wealth with specie accumulation.
Flashcard 15: What was one economic justification for colonial expansion?
Answer: Need for raw materials and new markets. Economic motives drove European imperial expansion and colonization.
Flashcard 16: Which monarch implemented mercantilist policies in France?
Answer: Louis XIV. The Sun King actively promoted French manufacturing and trade.
Flashcard 17: What did mercantilists believe about the world's wealth?
Answer: It was finite and needed to be accumulated. This zero-sum view justified aggressive trade competition between nations.
Flashcard 18: Which economic system emphasizes national self-sufficiency?
Answer: Mercantilism. Reduced dependence on foreign goods was a key mercantilist goal.
Flashcard 19: What was one negative effect of mercantilism on trade relations?
Answer: Increased international tensions. Competition for trade dominance created conflicts between European powers.
Flashcard 20: What was the main goal of the French economic policy under Colbert?
Answer: To strengthen the economy through mercantilism. Colbert's policies aimed to make France economically self-sufficient.
Flashcard 21: Which term describes government grants for specific economic activities?
Answer: Subsidies. Government financial support promoted favored industries and exports.
Flashcard 22: What was one effect of mercantilism on European economies?
Answer: Increased state intervention in trade. Governments actively managed commerce to achieve national objectives.
Flashcard 23: Which empire became a model of mercantilism through its global trade network?
Answer: British Empire. British colonies and trade networks exemplified mercantilist success.
Flashcard 24: What role did chartered companies play in mercantilism?
Answer: Controlled trade and colonial ventures. These monopolies implemented state-directed trade policies abroad.
Flashcard 25: Identify a non-tariff barrier used in mercantilism.
Answer: Import quotas. Quantity restrictions complemented tariffs in protecting domestic markets.
Flashcard 26: What economic concept is illustrated by a nation exporting more than importing?
Answer: Trade surplus. Export surpluses demonstrated successful mercantilist implementation.
Flashcard 27: Which law required American colonies to trade primarily with England?
Answer: Navigation Acts. These laws enforced colonial dependence on the mother country.
Flashcard 28: What is the primary measure of wealth in mercantilism?
Answer: Accumulation of gold and silver. Precious metals were considered the foundation of national strength.
Flashcard 29: Identify one criticism of mercantilism.
Answer: It leads to colonial exploitation. Mercantilist policies often harmed colonial populations and economies.
Flashcard 30: What is a balance of trade?
Answer: The difference in value between a country's imports and exports. This metric determined whether nations gained or lost wealth through trade.