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Mercantilism

Handout #


WHAT IS IT?

Mercantilism was an economic system in the 1500s-1700s that was based on the belief that in
order for countries to build up power and wealth in the form of gold and silver, they had to export
more than they imported in order to create a favorable trade balance.

WHY IS IT IMPORTANT?

It helps to explain the economic relationship between Great Britain [aka England] and its
American colonies, and how tensions in that relationship eventually helped spark the American
Revolution.

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