Great Britain prohibited colonies from trading with other European countries. Great Britain passed the Navigation Acts in 1651. The Navigation Acts restricted the colonies’ trade with Great Britain. This led to economic disadvantages for the colonies. The colonies had to purchase finished goods from Great Britain. Secondly, the colonies had to sell raw materials at the price set by Great Britain. Finally, colonists had to pay for British finished goods in gold. This created less disposable money for colonists. The restrictions on colonial trade were one of many grievances that would eventually lead to the American Revolution.

Question

During the sixteenth through eighteenth centuries, Britain’s economic system was dominated by mercantilism. Mercantilism was an economic theory that viewed the world’s economy and financial wealth as static, not changing much from year to year. According to this economic viewpoint, supply and demand remained the same, but resources were limited. The amount of gold and silver a nation was able to accumulate defined its wealth. Nations that acquired more gold and silver were believed to have an advantage over other nations.When the New World was discovered, British policy makers believed they had to hurry up and claim their share of New World resources, including gold and silver, before other European nations claimed those resources.Regulating trade was critical to having power in a mercantile system. To increase wealth and power, governments worked to reduce imports and increase exports. By imposing stiff tariffs, governments could make sure their nation sold more goods than it bought. Foreign markets would pay for these exported goods with gold and silver. The home nation would then accumulate a larger portion of the world’s wealth.Because mercantilism discouraged imports, it favored the interests of local producers and merchants. Those in charge of production worked to increase the amount of goods produced inside the country. Merchants then passed those goods along to consumers. In England, strict laws encouraged consumers to purchase British-made goods instead of foreign goods. This kept the bulk of the country’s wealth within its borders.

Identify how trade barriers in the colonies fit into Britain’s mercantilist economy.(1 point)ResponsesTrade barriers made it difficult for the colonists to trade with British companies.Trade barriers made it difficult for the colonists to trade with British companies.Trade barriers made it difficult for Britain to export goods to the colonies.Trade barriers made it difficult for Britain to export goods to the colonies.Trade barriers made it difficult for the colonists to trade with any but British companies.Trade barriers made it difficult for the colonists to trade with any but British companies.Trade barriers made it difficult for the colonies to engage in the triangular trade route.Trade barriers made it difficult for the colonies to engage in the triangular trade route.

Answer 1

The correct response is: Trade barriers made it difficult for the colonists to trade with any but British companies.

This answer accurately reflects how the Navigation Acts and other mercantilist policies restricted colonial trade to primarily British companies, limiting economic opportunities and benefits for the colonies while reinforcing Britain's control over colonial resources and markets.