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Relevance of mercantilism
European mercantilism
Relevance of mercantilism
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The seventeenth and eighteenth centuries were tumultuous times in Europe. The major powers of Europe were all vying for dominance of the world economy, and were trying all kinds of methods in order to achieve that goal. As the centuries passed, Britain came to dominate the Atlantic trade and became one of, if not the major power in Europe. The question is though, how did Britain come to this dominant position in the Atlantic economy? While the rise of Britain cannot be attributed to just one aspect of society, it can be said that the economic policies of Britain greatly influenced their rise to power and are a significant reason for their dominance in Atlantic trade.
The rise of Britain began in the late sixteenth/early seventeenth centuries during the decline of the Spanish Empire. Much of Spain’s overseas empire was in decline during this time
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The goal of this act was to “boost the recruitment of British seamen into the merchant marine and the navy; to stimulate employment in British ports and linked industries in their hinterlands; and to ensure that the profits of trade, plus shipping and harbor dues, benefited Britain rather than rival foreign centers of trade.” This idea was fundamentally mercantilist in origin. According to mercantilist doctrine, “legitimate exchange between colonists of different nationalities was seen as a threat to the imperial strength of the nation state,” so it makes sense that in order to maintain power over their trade and income, the Navigation Acts were created at the expense of Britain’s rivals. Despite all the economic success in Britain, “much of the vigour and enterprise that underpinned British trans-Atlantic trade and settlement in the empire was not the direct result of the Navigation Acts; at least equally important was the efficiency of the private sector of the
For example, the Navigation Acts of 1660 and 1663 specified a number of key trade related rules. First, they specified that all colonial trade had to be carried on ships owned by British or colonial traders. Secondly, all colonial goods bound for North America had to pass through certain English ports, in order to be taxed and monitored. Finally, enumerated goods such as sugar were to be shipped only to English ports. Despite these laws existing, the government in London did not enforce them strictly up until 1763. This policy is often referred to as ‘salutary neglect’ and it had the effect of introducing a perceived sense of autonomy and self-determination in the North American colonies. Following 1763, the British government began to enforce the Navigation Acts British lawmakers began to introduce more Acts which further restricted and monitored colonial trade and increased taxes. To the parliament in London this was just enforcing and building upon old laws, an opinion that was not shared by the
It was expected to result in a favorable balance of trade, with imports not exceeding exports. The significance of this term is that this system allowed gold and silver to flow into England, bringing economic expansion. As a result, these mercantile policies laid the ground for overseas colonization and allowed England to rise as a challenge to Spanish power in the New World.
Trade was a vital part of the economy of both England and the British colonies. The colonies would provide a majority of raw materials that would be shipped to England where then they would process raw materials into goods and sell them at markets provided by the colonies. Within this system both England and the colonies depended on each other for commerce. To further enforce this system on their oversees empire England enacted the Navigation Laws. In 1650 the first of these laws was aimed at keeping trade between the colonies limited only to their mother country, England. The law restricted trade of such shippers as the Dutch, by stating all goods must be transported on English vessels to or from the colonies. This helped keep money within British control, but also increased both England’s and the colonies’ merchant marine. Further laws were passed, but none that imposed strict regulations on the colonies. In fact the colonies received advantages from the mercantile system of England. As colonies of England they had the rights of Englishmen. They also had some opportunities of self-government. As compared economically to the average Englishmen of the time, the average American colonist was more often better off. In some markets, such as tobacco, the colonies had great advantages. Although not allowed to trade tobacco with any other country; they were guaranteed a monopoly on the English market. One of the major advantages of British imperialism was the protection supplied by the British army. With the strong soldiers providing defense against natives and other inter colonial disputes and the mighty British navy protecting their commerce on the seas; the colonies benefited from great advantages provided by their oversees “rulers';.
One facet of this unique system involved the numerous economic differences between England and the colonies. The English government subscribed to the economic theory of mercantilism, which demanded that the individual subordinate his economic activity to the interests of the state (Text, 49). In order to promote mercantilism in all her colonies, Great Britain passed the Navigation Acts in 1651, which controlled the output of British holdings by subsidizing. Under the Navigation Acts, each holding was assigned a product, and the Crown dictated the quantity to be produced. The West Indies, for example, were assigned sugar production and any other colony exporting sugar would face stiff penalties (Text, 50). This was done in order to ensure the economic prosperity of King Charles II, but it also served to restrict economic freedom. The geographical layout of the American colonies made mercantilism impractical there. The cit...
The Treaty of London (1604) ended the war between England and Spain and secured Spain’s position as a leading power in the world. Although the war was over, there were still plenty of tensions between the two countries. There is no hiding the fact, that the rivalry between England and Spain in the 1500s and 1600s assisted in spurring the colonization of the New World in completion of new land, wealth and power. Military bases for warring against Spain could also be created in the New World and encouraged England’s colonization as well. Without doubt, the war with Spain and the rivalry created afterwards, was a major stimulation in building new colonies in
The French and Indian War impacted the trans-Atlantic economic relationship between the motherland and her colonies. Before the war colonists were rushing to buy new British manufactured goods resulting from the early stages of the industrial revolution. To pay for these manufactured goods, colonists increased their export of raw materials for sale to Britain. Although the exports were able to pay for a significant portion of cost of British imports, a significant shortfall was covered by British loans. This economic relationship saturated much of pre-French and Indian War colonial America and became normal. After 1763, Britain was in dreadful need for revenue to pay for the French and Indian War. Britain was clever on finding ways to raise revenue from the colonies. From 1650 to the end of the French and Indian War was a period of "salutary neglect." Britain had very little involvement in the lifestyle of the colonies. After the French and Indian War, mercantilism became strictly enforced. Merc...
Beginning in the 1600s, one of the main concepts for England, France, and Spain at the time was mercantilism. These were the three most powerful and blooming countries at the time. Starting from the earliest years as the late 1500s, and continuing on, all three countries were soon to battle for claim of the new land. Only one country could triumph. Despite success, even the strongest can become the weakest.
Although Great Britain emerged victorious in the Seven Years War, it left Great Britain with significant debt. The British looked to America to help it. First the British began enforcing existing laws like the Navigation Acts, which put limits on colonial imports and exports. To enforce these laws better, the British passed the "Writs of Assistance" that gave officials warrants to search anything or anyone suspected of smuggling, anywhere or anytime. British warships would even patrol American harbors to catch potential smugglers. These smugglers, if caught, would be tried in the newly established Admiralty courts. In these courts, the accused had no right to trial by jury, and the judges pocketed a percentage of the fines. The British viewed these courts as insurance to make sure smuggling stopped, juries composed of Americans might be biased, so they were done away with.
The interests of England within the colonies were self-centered. The English were exploiting were trying to govern the colonies by using the mercantilist system. Mercantilism is when the state directs all the economic activities within it's borders(Blum 31). England was not attempting to make any changes that would help the colonists. They limited the colonies commerce to internal trade only(Miller 9). The English were exploiting the colonies by demanding that the colonies import more from England then they exported to the colonies. They were importing raw materials from the colonies and making them into exportable goods in England. They would then ship these goods to foreign markets all around the world including the colonies(America Online ). Throughout the seventeenth century the English saw America as a place to get materials they didn't have at home and a market to sell finished products at after the goods had been manufactured. This was detrimental to the colonies because it prevented them from manufacturing any of the raw materials they produced and made them more dependent upon England.
Trade was important to the Maritimes. Up to 1846 Britain had provided the British North American colonies with a market for their goods, but then began a policy of free trade. Because there were no tariffs placed on any country the colonies lost a sure market for their goods. Many colonists were concerned that some might consider union with the United States and the British North American colonies was brisk with large amounts of lumber and grain being imported by the U.S. When the Americans ended the Reciprocity Treaty in 1865, many Maritimers became uneasy about the economic future. It became apparent that in order to develop thriving trade; new economic links would have to be developed. 3
The movement of goods, people, and wealth in the late 17th and 18th centuries permanently changed societies across the continents of Europe, Africa, and North and South America, thereby increasing the reach of globalization in the modern age. Most influential to this movement was what is sometimes referred to as “The Atlantic Circuit”, a triangle of trade between Western Europe, western Africa, and the West Indies. Out of this circuit came the rapid growth of the Atlantic slave trade, which not only established multiple industries of agriculture, but significantly changed the economies of all countries involved. The agriculture industries, in combination with further colonization transformed the land of the Americas, and the impacted diets across the world. Capitalist systems and mercantilist policies provided structure to trade, and allowed both private investors and nations to profit from it. These systems laid the foundation for future economies by creating new levels of power and interaction between the private and public sectors and, in the process, generating many successes and failures.
In order to understand how the relationship between Britain and the American Colonies became so strained, we must first examine the nature of Britain’s imperial authority. Economic relations between the two entities were governed by Navigation Acts and trade Acts. These Acts existed for the express purpose of maximizing profits for Britain with regards to her colonies in North America. They served to completely control colonial trade, and in the process stifled some sectors of the colonial economy. To Britain’s dismay, many colonists openly flouted these regulations during the Seven Years War, largely because of Britain’s preoccupation with the ongoing hostilities. After the war it became clear the extent to which some colonists had openly flouted the Trade and Navigation Acts. This was doubly insulting for Britain because of the perceived sacrifices made by Britain during the war in terms of material and men, all spent to keep the colonies (and colonists) ou...
Following the Age of Discovery in the 15th century, the race for colonization was one fought on a global scale. Many nations sought to expand into a maritime empire, one that covered all corners of the world and placed them on the top charts of global domination and power. The British were no exception to this; in fact, they were one of the leaders in colonization for many centuries, their exploits reaching from the Atlantic to the Indian Ocean. Australia and North America were two of the targets of the British’s empire expansion; however, the reason, method, and impact of each differed from each other greatly.
The first notable positive effect of the empire is industrialization. The British having been ahead in industrial evolution helped spread technology to new places around the world. Particularly, the British Empire was responsible for the development of early industries in their colonies (Balasubramanyam & Wei, 79). They built industries in the colonies such as sugar factories, cotton factories and tobacco industries. Certainly, this was a new development in these colonies that later led to the colonies mechanizing their cottage industri...