3-15-13

[3rdNate D.]

Growth of Mercantilism

• The (more advanced) countries in Europe used this economic policy during the Colonial America
• It is really a policy that states that a country's power is ties to its wealth
• Stating that money was needed to purchase some goods that are vital to the country
• bottom line: More Money More Better

Example of Mercantilism

1. England wants Gold
2. so England establishes colonies in America
3. America does not have much gold but can produce cotton and tobacco
4. England buys cotton cheap and does not allow america to produce cloth
5. England sells the finished cloth to America and England's rival France
6. England gets gold and depletes part of France's gold reserve