Mercantilism
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Mercantilism is an economic policy that attempts to maximize exports while minimizing imports. Every country implements mercantilist policies to some degree. A country that exports more than it imports has a trade surplus, while a country that imports more than it exports has a trade deficit. Read this section, which gives a background on how mercantilist policies have shaped international trade.
Key Points
- Mercantilism was in place in both the French and English colonies.
- Successes in the colonies led to wealth accumulation in the imperial centres, resulting in important economic, political, and social changes.
- Legislation like the Navigation Acts favoured colonial exporters and shipbuilders but not colonial manufacturers.
- Colonists worked within the mercantilist constraints, but looked for ways to circumvent them as well.