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A brief essay on mercantilism
A brief essay on mercantilism
Views of mercantilism
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As Great Britain began forming a union with England and Scotland they soon became the leader in building a unified economy, was this unified economy good or bad for the colonists? As the English began constructing trade laws a mercantile for importing and exporting was developed. This system was the true definition of a monopoly. These laws, that were put in place, caused economic warfare with France. For the colonist these terms were extremely restrictive and limited as they could only ship their products on British or American ships and they could only buy most of their goods from Britain. My thought is the way to make money is to export more goods than you are importing. This doesn’t seem to be too much of a positive thing for the colonists.
After the Seven Years’ War these monopolies allowed the English a steady supply of goods at low prices and they would export them to other nations at higher prices, the only folks benefiting from this practice is the colonist goods requiring processing lead to new jobs in England. An increase in agriculture resulted in an alarming number of slaves whose labors allowed the colony to become richer, well that is those in power of the colony. With the trade restrictions, war, and slavery, mercantilism at this point in time is much more of a curse than a blessing. The colonist producing the goods is suffering at the expense of those seeking and demanding great wealth.
After the Seven Years Way England was broke for she had spent more money needed to win the war. Also winning the war gave the colonist a “we can do it spirit”. However because England now was facing debt she decided to tax the colonies. One the first acts passed was the sugar act passed in 1764. This Act was the raise revenue in American colonies. What it did was lowered the tax from six penses to three penses per gallon on foreign molasses. Molasses is a product made by refining sugarcane, grapes or sugar beets into sugar. This upset the colonist because before the sugar act they didn’t have to pay the tax so even if it was lowered that meant nothing for they now had to pay for it. A year later, in 1765, the Britain’s passed another act known as the Stamp Act. The Stamp Act put a tax on stamped paper, publications, playing cards, etc. Because it was on all paper products in a way it affected everyone; from the papers for the upper class such as lawyers, publications such as newspapers for the middle class, and playing cards for the lower class for entertainment. Next, the Townshend Act passed by Charles Townshend. This came in 1767, which imposed taxes on colonial tea, lead, paint, paper, and glass which just like the Stamp Act affected all of the classes in the colonist in the Americas. Though this act was removed three years later in 1770, it still left colonists with a warning that conditions may become worse. Around 1773, parliament passed the Intolerable Acts one of those acts which affected taxation was the Bost...
In the early eighteenth century consumer goods flooded American markets, the colonists needed to sell what they produced in order to purchase British goods that were beyond their ability to manufacture and therefore made them feel more a part of the British "empire of goods".
In a similar economic revolution, the colonies outgrew their mercantile relationship with the mother country and developed an expanding capitalist system of their own. In England, the common view was that the colonies only purpose was to compliment and support the homeland. This resulted in a series of laws and protocols called th...
Of the many circumstances that promoted a developing American identity, British mercantilism and their following regulations on it is of the utmost importance. The British government believed that wealth was power and that a country's economic, military, and political wealth could be measured by the amount of gold or silver in its treasury. To amass this wealth, the British passed laws to regulate the mercantilist system. The Navigation Law conceded that all commerce flowing to and from the colonies could be transported only in British vessels. Other events that infuriated the colonists were the insufficient amount of currency in America as well as Britain's right to nullify any legislation passed by the colonial assemblies. One such thing that encouraged a unity amongst the colonists was Benjamin Franklin's cartoon showing the necessity of a unified American government. [Doc A] Although some may say the mercantilist system was excellent for the colonists, it actually burdened the colonists with annoying liabilities. Mercantilism stifled economic initiative and imposed a rankling dependency on British agents and creditors. With the continued efforts of complete control by the British, the colonists became livid and developed a better sense of their identity as Americans; they knew what had to be done!
In a similar economic revolution, the colonies outgrew their mercantile relationship with the mother country and developed an expanding capitalist system of their own. With Britain's reliance on the mercantile system it rubbed off on most of the colonies. They wanted to be self sufficient so that they would not have to resort on help from other countries. The Southern colonies for example relied heavily on trade with England. This was caused by the geography in the south, because it was mostly a tidewater region. This allowed ships to sail deep within the south. Therefore cotton from Georgia was sent across to England, then it was made into thread or such. It was then sent back to the colonies were it was to be made into various items. Due to the geographic location of the northern ...
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...
“When on December 22, 1775, the British Parliament prohibited trade with the colonies, Congress responded in April of 1776 by opening colonial ports—this was a major step towards severing ties with Britain.” (history.state.gov) The colonies no longer depend solely on British goods, but had set up strong trading agreements with numerous countries. These agreements sustained the colonies. By setting up trade agreements with other countries, the colonies had, in a way, become “independent’ from the necessity for British goods. These British goods had become obsolete to the goods of rival
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...
With all the horrible political things that happened between the American colonies and Britain, you would think that economically maybe something good could come out of it - but sadly, nothing did. In Document F, everything is explained. The commissioners say, "We find that the revenue arising therefrom is very small and inconsiderable,...and is not yet sufficient to defray a fourth part of the expense necessary for collecting it.
Economic concerns of the British caused the colonization of British North America. Such economic concerns included the opportunity to acquire gold, silver, a North American waterway that would lead directly to China and the Indies, and the prospect of countering Spain's dominance in North America (Boorstin et al. 34). In addition to these economic reasons for colonization, the English were also seeking to obtain the essential "raw materials" in America that they had been previously buying from other European countries for exorbitant amounts of money and gold (Boorstin et al. 34). Great Britain also sought to solve other economic problems through American colonization. For example, England needed to replenish some of its diminishing materials and assets, generate another "market" to export its cargo and merchandise, maintain its powerful navy and "merchant marine" through business with new American colonies, and to provide a new place for the unemployed to settle rather than escalating populace/crime and the economic burden in its own cities (Boorstin et al. 34).
In the years leading up to the American Revolution, important economic changes took place within the colonies as their economies transitioned from the previous subsistence farming and subsistence living type of economies into true consumer economies. (Devore, Lecture #3.) This shift toward a true consumerism society in the colonies, also known as Anglicizing the colonies, began to make the colonies more uniform and began to bring the colonies together into more of a cohesive unit. (Devore, ...
The British also implemented new taxes. The Sugar act of 1764 sought to reduce smuggling, which occurred partly as a result of the earlier Molasses Act. This gave British possessions in the Caribbean the upper hand in sugar trade, which in the British view helped the empire as a whole, but to Americans, and especially the merchants, this put limits on their opportunities. The Currency Act, passed about this time forbade the printing of colonial currency. British merchants benefited because they didn't have to deal with inflated American currencies. The Americans felt they were at an economic disadvantage as very little sterli...
Capitalism is an economic system in which the production and distribution are privately owned, the government involvement is minimal,and there is free enterprise. In Capitalism, the means of production are privately owned and operated for profit in a competitive market. Also the economic investment, ownership and profits are all owned by individuals. Under capitalism the state is separated from the economy, which means that the government has no role in business. In other words, everyone works for themselves. The market forces in a capitalist country runs by supply and demand which it determines the price and later on it turns into profits. Supply is the quantity of goods and services a business is willing to sell, while Demand is the quantity of goods and services consumers are willing to buy. Therefore, Capitalism is the best economic system because it rewards the ones that work hard and since the government does not control trade, there is a large variety of goods and creates options for consumers to fit their personal needs.
The essay, “The Noble Feat of Nike” by Johan Norberg basically talks about the effects of Nike going into third world countries, particularly Vietnam. Norberg explains how Nike’s factory gains from being in its desired location, Vietnam. Vietnam being a communist country comes to Nike’s advantage, because if they were located elsewhere they would have to pay workers higher wages and use more of their machines. Workers in these countries are provided with an air conditioned building with regular wages, free meal plans, free medical service, and training/education to operate the machinery within the factory. The workers find all of this beneficial and in their own favor because of the fact their earning double to five times the amount in wages than if they were working outdoors on a farm. This great deal, blinds them to notice the meaning behind the company’s location in Vietnam. The Nike factory was rather clever in making their location in that specific area to gain benefits for Western owners. The catch Nike gains from is simple. The owners pay factory workers only a small monthly sum from what they make selling the shoes to customers. Globalists state that the company doesn’t pull this fast one on the Western population because of our advancements compared to the Eastern countries. Western people would protest and strike to demand better wages for their work, but the people in Eastern countries have no choice but to deal with the injustice in order to support their families and educate their children.