Mercantilist Relationship Between the American Colonies and the British Government
Mercantilist Relationship between the American Colonies and the British Government
Randi Roselle
BE/HS 310-03
Professor W.M. Gorman
February 13, 2012
Mercantilism is an economic policy and theory where the government has complete control of trade, both foreign and inside boundaries. This policy was dominant during the 16th, 17th, and late 18th centuries, it demanded a positive balance of trade between the countries it was involved with. There were many policies that were within the theory based upon mercantilism including, building a network of overseas colonies and forbidding them to trade with other nations, forbidding trade to be carried in foreign ships, export as a trade barrier using domestic goods and services competitive against imports, and restricting domestic consumption with non-tariff barriers to trade. The British government established a mercantilist relationship with the American colonies that was to its benefit until 1763 and then the relationship no longer was of economic benefit to the British crown.
Prior to 1763 the colonists had no choice but to go along with Parliament's right to take actions on their behalf and the predominance of Britain's economic benefits over their personal ones. Seven Years' War was the war that altered the parliaments actions, had been intended to regulate trade and nothing else, Parliament's arrangements began to conflict with the colonists' interests. This caused the colonies to grow and thrive, by the time the British realized this Americans had already established lucrative trade with other countries. Britain became more aware of this growing “problem” and began to keep a close eye on the colonies and implemented regulatory policies, the British instituted a series of laws of trade and navigation known as the Navigation Acts. The purposes of these acts were to limit colonial trade to the British only. For this to be accomplished all trading to be done involving the colonists was to be on either English vessels or
Randi Roselle
BE/HS 310-03
Professor W.M. Gorman
February 13, 2012
Mercantilism is an economic policy and theory where the government has complete control of trade, both foreign and inside boundaries. This policy was dominant during the 16th, 17th, and late 18th centuries, it demanded a positive balance of trade between the countries it was involved with. There were many policies that were within the theory based upon mercantilism including, building a network of overseas colonies and forbidding them to trade with other nations, forbidding trade to be carried in foreign ships, export as a trade barrier using domestic goods and services competitive against imports, and restricting domestic consumption with non-tariff barriers to trade. The British government established a mercantilist relationship with the American colonies that was to its benefit until 1763 and then the relationship no longer was of economic benefit to the British crown.
Prior to 1763 the colonists had no choice but to go along with Parliament's right to take actions on their behalf and the predominance of Britain's economic benefits over their personal ones. Seven Years' War was the war that altered the parliaments actions, had been intended to regulate trade and nothing else, Parliament's arrangements began to conflict with the colonists' interests. This caused the colonies to grow and thrive, by the time the British realized this Americans had already established lucrative trade with other countries. Britain became more aware of this growing “problem” and began to keep a close eye on the colonies and implemented regulatory policies, the British instituted a series of laws of trade and navigation known as the Navigation Acts. The purposes of these acts were to limit colonial trade to the British only. For this to be accomplished all trading to be done involving the colonists was to be on either English vessels or