Britain And Mercantilism

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Britain and Mercantilism

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Beginning around 1650, the British government pursued a policy of mercantilism in international trade. Mercantilism stipulates that in order to build economic strength, a nation must export more than it imports. To achieve this favorable balance of trade, the English passed regulatory laws exclusively benefiting the British economy. These laws created a trade system whereby Americans provided raw goods to Britain, and Britain used the raw goods to produce manufactured goods that were sold in European markets and back to the colonies. As suppliers of raw goods only, the colonies could not compete with Britain in manufacturing. English ships and merchants were always favored, excluding other countries from sharing in the British Empire’s wealth.