Mercantilism: Early economic theory.

1) The amount of wealth in the

world is fixed, so wealth is
gained at the expense of
another.
2) The positive balance of
trade: More gold comes into
the country than out.
3) The Goal: Export more than
import for a profit.
4) Import cheap Raw materials
from colonies for finished
goods.
The Results
Benefits the home country at the expense of the colonies.
(Colonies could only sell to the home country, so competition
between colonies was fierce.)
Leads to competition between Europe and between colonies:
wars over colonies and between colonists.
Slows world trade and economic growth: protectionist policies
(Navigation Acts), military spending, war caused devastation,
danger (especially for the loser of competition)
Triangle Trade between West Indies, North America, and Europe
(later: the African slave trade would make it square)
New France became a trading colony, supplying furs to France
and purchasing manufactured products from the mother country.

 Furs account for more than 70% of the colony's exports and the
fur trade is directly responsible for the large expansion of
territory.