ECONOMIC ROLE OF THE COLONIES
Historical Background:
- from the 15th to the 19th century, European nations were in competition for __________
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- Portugal: First major European explorers
- Spain: First Europeans to permanently colonize the _______________________
- England: ______________________________________________ by the 1700s
- __________________________: Extensive North American claims by the
1700s
- Netherlands: Relatively small, but very wealthy, claims mostly in the
Pacific Islands and the ________________________________
Mercantilism:
- an economic policy by which governments seek to increase their wealth by
______________________________________ goods (or at least, more valuable goods)
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- _____________________ and ____________________ (colonies) are the keys to profit
Role of Colonies:
- provide ______________________________ for the mother country
- _______________________________________________ for later manufacture
- ______________________________ (slavery, indentured servitude, low wages)
- ___________________________________________ for agricultural production
- ____________________________________ not available in the mother country
- serve as a ____________________________ for goods produced in the mother country
- products not available in the colony are imported for sale
Role of Mother Country:
- guarantee the ___________________________ (military force) of colonies and settlers
- _____________________________________________________ in and out of colonies
- businesses set up to ______________________________ for the mother country
- distribution company often partially owned by the mother country
- mother country often charges ___________________________ on raw materials
- often charges ______________ on manufactured goods from the mother country
- colonial competition sometimes put out of business by the mother country
- merchants may have to sell goods at a marked up price to profit or break even
- American Examples:
- Navigation Acts
- 1621: all ____________________ not used in the colonies must be sent
to England where its sale was guaranteed; limited the amount of
tobacco to be exported annually. Tobacco prices dropped.
- 1660:
- _________________: listed goods could only be sold to England
- only regulated the most ______________________ British goods
- 1663: The Staple Act
- all goods going into or out of the colonies must first be sent
through England and pay a high tax
- effectively _________________________________ the colonies
- 1715 - 1750: Salutary Neglect
- British policy of ___________________________ in the colonies
- Molasses Act of 1733:
- tax on non-British molasses (from French/Spanish West Indies)
- rarely enforced because of the policy of ____________________
What do you think: is the relationship between the colony and the mother country equitable?
Can you see any possible connections to future events? Be sure to explain!
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