Friday, March 15

[4th JordanS]

Growth of Mercantilism

• The (more advanced) countries in Europe used this economic during Colonial Ameica
• It is really a policy that states that a country's power is tied to its wealth
• Stating that money was needed to purchases some goods that are vital to the  country
• Money was in the form of gold
• Bottom line: more money more better

Example:

1. England wants gold
2. So England establishes colones 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 finish cloth to America, and to England's rival, France
6. England gets gold and depletes part of France's gold reserve