3/15/13

[4th Chris]

Growth of Mercantilism • the (more advanced) countries in Europe used this economic policy during Colonial America • it is really a policy that states that a country’s power is tied to its wealth • money is needed to purchase goods that are vital to the country • more money more better • example 1. England wants gold 2. they establish colonies in America 3. America doesn’t have much gold, but can produce cotton and tobacco 4. England buys cotton cheap and does not allow America to produce cloth 5. England sell the finished cloth to America and France, England’s rival 6. England gets gold and depletes part of France’s gold reserve