Mercantilism

MERCANTILISMSept. 10-11, 2013Objective: Students will analyze the

economic system of mercantilism to determine how it relates to the development of European colonies and economic activity through texts, role play and written response.

VIDEO WARM UP

“How did exploration make the world smaller?”

Use RACE:1. Rephrase question in your answer.2. “According to the video,…” or “As seen in the video, …..”3. Give examples from video.

WARM UP

https://www.youtube.com/watch?v=b3fYF6YvesA

The period of time when Europeans began exploring the world by sea in search of new trade routes, new goods, and new trading partners.

MERCANTILISMThe economic system that places

restrictions on economic activity in order to maximize exports and minimize imports to increase your nation’s wealth.

COME UP WITH A MATHEMATICAL EQUATION FOR MERCANTILISM.

Remember:To remain economically and politically

strong, your country must export more than it imports.

This type of economic system results in a profit for your country.

“If you’re a country and you have a lot of money, you generally have a lot of ___________?”

What would happen to the world economy if every country adopted the philosophy

of mercantilism?

The world (global) economy would become stagnant if every country wanted to export and no one wanted to import.

Countries colonizing the New World:

SpainPortugalGreat BritainFranceThe

Netherlands

Raw materials found in the New World:

WheatCottonTobaccoSugarWood

MERCANTILISM – HOW IT WORKS

1. Slaves are captured in Africa and shipped to the Americas to produce raw materials such as sugar, cotton, tobacco, wood, wheat. 2. The ‘mother country’ (from Europe) buys raw materials from the colonies at a low price and ships them back to Europe to manufacture into goods that can be sold. 3. Those manufactured goods are sold back to the colonies for a large profit.

BY THE WAY,

Colonies could only trade with the European country that colonized them– their “mother country”.

Colonies could not trade with other countries or colonies.

GROUP ROLE PLAY INSTRUCTIONS

ANSWER IN YOUR NOTEBOOK

How is mercantilism related to the development of European colonies?

Use RACE and reference the role play and your notes to support your answer.

EPILOGUE

After a while, many began to revolt against the idea of mercantilism and stressed the need for free trade.

free trade – the government does not interfere with trade. Prices are based on supply and demand.

http://www.investopedia.com/terms/m/mercantilism.asp#axzz25rXIHoII

http://www.businessdictionary.com/definition/mercantilism.html

http://edtech2.boisestate.edu/lockwoodm/Imperialism/mercantilism.htm

http://geography.about.com/od/historyofgeography/a/ageexploration.htm

http://edtech2.boisestate.edu/lockwoodm/Imperialism/colonies.htm

wiki.coe.jmu.edu/msme/admin/download.html?attachid=3262344, Schoenberger, Kristen

http://wiki.coe.jmu.edu/msme/helpwin/1279

http://abed.sd79.bc.ca/acip/articles/fur_trade/mercantilism.pdf