Textiles $ 300 Lumber $ 500 Gold $ 200 England Exports textiles England Imports Lumber Does the...

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And the Reason for Colonies

Transcript of Textiles $ 300 Lumber $ 500 Gold $ 200 England Exports textiles England Imports Lumber Does the...

Page 1: Textiles $ 300 Lumber $ 500 Gold $ 200 England Exports textiles England Imports Lumber Does the money England receives from France for its Export of Textiles.

And the Reason for Colonies

Page 2: Textiles $ 300 Lumber $ 500 Gold $ 200 England Exports textiles England Imports Lumber Does the money England receives from France for its Export of Textiles.

England France

Textiles$ 300

Lumber$ 500

Gold$ 200

Mercantilism

•England Exports textiles•England Imports Lumber

Does the money England receives from France for its Export of Textiles equal the cost of the Lumber they import from France? What is the result of the imbalance in trade?What does England have to give to France to purchase Lumber?

Page 3: Textiles $ 300 Lumber $ 500 Gold $ 200 England Exports textiles England Imports Lumber Does the money England receives from France for its Export of Textiles.
Page 4: Textiles $ 300 Lumber $ 500 Gold $ 200 England Exports textiles England Imports Lumber Does the money England receives from France for its Export of Textiles.
Page 5: Textiles $ 300 Lumber $ 500 Gold $ 200 England Exports textiles England Imports Lumber Does the money England receives from France for its Export of Textiles.

• Definition: When a country like Britain (England) used its colonies to form a

favorable balance of trade.

Page 6: Textiles $ 300 Lumber $ 500 Gold $ 200 England Exports textiles England Imports Lumber Does the money England receives from France for its Export of Textiles.

England France

Textiles$ 300

Lumber

Gold$ 300

Lumber

Britain (England) can use the colonies to get the lumber they used to have to get from France

England no longer needs French Lumber

France still needs to import textiles from England.

France now has to pay Britain to get the textiles it needs

Page 7: Textiles $ 300 Lumber $ 500 Gold $ 200 England Exports textiles England Imports Lumber Does the money England receives from France for its Export of Textiles.

• Goal of Mercantilism: A country like England wants to create a favorable balance of trade. Colonies helped countries achieve this goal.

– Example 1 England had a trade deficit» Imports cost more than exports = debt

– Example 2 England used its colonies to get the goods it once imported, but it still exported its textiles» Exports exceeded the cost of imports = profit