DO NOW – 10 Minutes What makes an economy strong? What makes an economy weak? What would a perfect economy look like? How does the economy impact you? Exit Quiz Review 1. 2. 3. 4. 5. Identify one characteristics of New Amsterdam’s government. Why were PUSH factors from the Netherlands not strong? Why did the Dutch give up New Amsterdam to the English? Who were the Quakers? What ideas did the Quakers support? Identify one reason why colonists in Pennsylvania prospered. SSUSH2a SWBAT explain the development of mercantilism and the trans-Atlantic trade. Agenda SSUSH2a – SWBAT explain the development of mercantilism and the Transatlantic Trade. Essential Question – How were the economies of England and the American colonies connected? Mercantalism Mercantilism – A nation or an empire could build wealth and power by developing its industries and exporting manufactured goods in exchange for gold and silver. A nation’s power is determined by how much gold and silver it has. To be wealthy, you have to sell more than you buy Goal - gold is coming in, not going out. Imports & Exports Import – a good made in another country that is brought into a country to be consumed. Export – a good made in a country that is sent away to another country to be consumed. Mercantilism & Colonies For England, the colonies served 2 purposes: 1.) Offered new resources (gold coming in) 2.) Offered a new market. (gold coming in) English could now sell to a whole new continent (including Native Americans). America existed to support England England was overcrowded and had very little land America had abundant land Good for farming America provided much food for England 90% of colonists worked in agriculture (farming) Transatlantic Trade Stop and Jot – 5 minutes Pretend that you are a merchant who is part of a joint- stock company that travels to the Americas to trade. Explain why you go, what you trade, and why the colonies are extremely important for Mercantilism. Paragraph of at least 5 sentences Navigation Acts Only English ships could trade w/ colonies Colonies could only buy European goods that came through an English port English would tax these goods. Valuable colonial goods could only go to England Tobacco, Sugar, etc Growth of English Economy In 1600, England had been a poor nation. By 1700, England’s economy was booming 6 times the value of imports/exports London became world’s largest port. Increasing Reliance on Colonies In 1700, colonies consumed < 10% of English exports By 1772, rose to 32% Colonies were importing more than they were exporting Deficit Many colonists had growing debts. Group Activity – 5 - 10 minutes Divide into the following groups: a. A king in Europe b. European shopkeepers c. European farmers c. Shopkeepers in Europe d. Farmers in the New World (American colonies) 2. In your group, first answer the following two questions: a. What would be benefits of mercantilism for you? b. What do you see as a possible negative aspect to mercantilism? c. Overall, is mercantilism a positive or a negative system for you? Group Activity – 15 minutes Next, in your group, pretend you get to start a new business. Within the rules of mercantilism, create a new business. This business can be anything at all. It must be a business that can succeed in mercantilism. Create a business plan for this new business. How will it succeed? What challenges will it face? How will you overcome those challenges? How will you use mercantilism and Transatlantic trade to your advantage? How will Transatlantic Trade and mercantilism make it harder for your business to succeed? Be sure to consider how the Navigation Acts will impact your business. Business Plan Presentations 10-15 minutes Select one group member to present their business plan. The other group members will each be asked one question by the teacher about how their business plan will work within the Mercantilism system and the Transatlantic Trade System. Exit Quiz – 7 minutes 1.) According to mercantilism, which of the following is most important to the economy? The individual The nation Both the individual and the nation Neither the individual nor the nation 2.) According to mercantilism, an economy is strong when: There are more imports than exports There are more exports than imports Exit Quiz 3.) Name one rule put in place by the Navigation Acts. 4.) In the 18th century, who did Transatlantic Trade benefit more? The English or the American colonists? 5.) What was the most common industry that the American colonists worked in?