Mercantilism

Economic theory that states exports should exceed imports

Money should stay within a country

Colonies exist to make money for the mother country

Natural resources are taken from colony to mother country

Mother Country sells manufactured goods back to colony

​Mother Country decides who the colony trades with.

Exports are goods that leave a country because they've been bought by other countries

Imports are goods that come in a country because the citizens have bought them

Raw Materials are the basic materials from which a product is made

Manufactured goods are items made from raw materials using machinery and labor

Colony – A territory under the control of another country, typically a distant one, and occupied by settlers from that country

• Colonies give the mother country natural resources, land and a place to sell products

3 types of colonies

• Trading post - small village set up to trade with natives

• Plantation - large farms set up to grow cash crops

• Settler - towns or cities set up to claim territory