Economic Development and Mercantilism - AP European History

Exploitation and disruption of local economies. Mercantilist extraction often devastated native economic structures.

Mercantilism is state-controlled; capitalism is market-driven. Government control versus free market mechanisms distinguished these systems.

Increased wealth and political power. Trade surpluses translated into military and diplomatic advantages.

Mercantilism. Colonies were essential for implementing mercantilist trade strategies.

Mercantilism. Mercantilism shaped European economic policy for three centuries.

To manage trade between England and the East Indies. This chartered company controlled lucrative Asian trade routes.

A law to restrict colonial trade to English ships. This protectionist measure strengthened English shipping dominance.

Sources of raw materials and markets for exports. Colonies provided controlled supply chains for mercantilist empires.

To achieve a favorable balance of trade. Export surpluses were seen as the key to national prosperity.

Protectionism. Trade barriers protected domestic industries from foreign competition.

Increased national wealth through trade balance. Positive trade balances accumulated precious metals and strengthened states.

Navigation Acts. These laws enforced colonial dependence on the mother country.

An economic theory that wealth is based on the accumulation of gold and silver. This theory equated national wealth with specie accumulation.

Need for raw materials and new markets. Economic motives drove European imperial expansion and colonization.

Louis XIV. The Sun King actively promoted French manufacturing and trade.

It was finite and needed to be accumulated. This zero-sum view justified aggressive trade competition between nations.

Mercantilism. Reduced dependence on foreign goods was a key mercantilist goal.

Increased international tensions. Competition for trade dominance created conflicts between European powers.

To strengthen the economy through mercantilism. Colbert's policies aimed to make France economically self-sufficient.

Subsidies. Government financial support promoted favored industries and exports.

Increased state intervention in trade. Governments actively managed commerce to achieve national objectives.

British Empire. British colonies and trade networks exemplified mercantilist success.

Controlled trade and colonial ventures. These monopolies implemented state-directed trade policies abroad.

Import quotas. Quantity restrictions complemented tariffs in protecting domestic markets.

Trade surplus. Export surpluses demonstrated successful mercantilist implementation.

Navigation Acts. These laws enforced colonial dependence on the mother country.

Accumulation of gold and silver. Precious metals were considered the foundation of national strength.

It leads to colonial exploitation. Mercantilist policies often harmed colonial populations and economies.

The difference in value between a country's imports and exports. This metric determined whether nations gained or lost wealth through trade.