Growth of Mercantilism
- The more advanced countries in Europe used this economic during Colonial America
- It is really a policy that states that a country's power is tied 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
- England wants gold
- So England establishes colonies in America
- America does not have much gold, but can produce cotton and tobacco
- England buys cotton cheap and does not allow America to produce cloth
- England sells the finished cloth to America, and to England's rival, France
- England gets gold and deletes part of France's gold reserve
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