Mercantilism and Trade
Mercantilism and Trade is a Grade 5 history skill from Pengi Social Studies. Students learn about the economic policy of mercantilism that guided European colonization, in which colonies existed to enrich the mother country by supplying raw materials and purchasing manufactured goods, restricting colonial economic freedom.
Key Concepts
England controlled the colonial economy through a system called Mercantilism . The theory was that colonies existed solely to make the "mother country" rich.
Under this system, colonies provided raw materials (like tobacco, timber, and cotton) to England at low prices. In return, they were forced to buy back finished British goods (like furniture and cloth).
To enforce this, Parliament passed the Navigation Acts, which restricted who the colonies could trade with. These restrictions began to create deep resentment among American merchants and colonists.
Common Questions
What is mercantilism?
Mercantilism was an economic theory that a nation grew wealthy by exporting more than it imported. Colonies were valued as sources of raw materials and as markets for manufactured goods.
How did mercantilism affect the American colonies?
Britain restricted colonial trade through the Navigation Acts, requiring colonies to trade only with Britain and using colonies as a source of raw materials for British industry.
What were the Navigation Acts?
The Navigation Acts were British laws that controlled colonial trade, requiring that goods be shipped on British ships and that certain goods be sold only to Britain.
Why did colonists resent mercantilism?
Colonists felt the restrictions on trade were economically unfair. They could not freely trade with other countries, which limited their ability to grow wealthy.
What grade covers mercantilism and trade?
This is a Grade 5 social studies history topic.