Question

Difficulty: EasyTransatlantic Trade and Mercantilism

“...[N]o goods or commodities whatsoever shall be imported into or exported out of any lands, islands, plantations or territories to his Majesty belonging or in his possession... in Asia, Africa, or America, in any other ship or ships, vessel or vessels whatsoever, but in such as do truly and without fraud belong only to the people of England or Ireland, dominion of Wales or town of Berwick upon Tweed, or are of the built of and belonging to any the said lands, islands, plantations or territories, as the proprietors and right owners thereof...”
— Navigation Act of 1660

Which of the following economic systems was the legislation excerpted above primarily designed to enforce?

  1. A
    Free-market capitalism, by encouraging open competition and unrestricted shipping routes for colonial merchants
  2. B
    Industrialization, by promoting the rapid growth of domestic manufacturing and factories in the Chesapeake colonies
  3. Mercantilism, by ensuring that the British Empire maintained a favorable balance of trade through monopolized colonial marketsAnswer
  4. D
    Indentured servitude, by establishing legal codes to regulate contracts for European laborers migrating to New England

Answer

Mercantilism, by ensuring that the British Empire maintained a favorable balance of trade through monopolized colonial markets
The correct answer is correct because the Navigation Act of 1660 was a cornerstone of British mercantilism, an economic system that sought to enrich the mother country by maintaining a favorable balance of trade. By mandating that all colonial trade occur on English or English-colonial ships, England secured a monopoly over raw materials and colonial consumption, preventing rivals like the Dutch from profiting off English colonies.

Step-by-Step Solution

1
Analyze the stimulus to identify the key restrictions placed on colonial trade.
The Navigation Act of 1660 specifies that all goods imported into or exported out of English colonies must be carried on English-built or English-owned ships.
This establishes that the legislation is aimed at regulating and restricting shipping to keep trade within the empire's network.
2
Connect these trade restrictions to the primary early modern European economic systems.
Restricting colonial trade to benefit the mother country is the core tenet of mercantilism, which seeks to maximize exports and monopolize colonial markets to maintain a favorable balance of trade.
Identifying the core goal of the legislation helps match it to the correct economic policy.

Key Concept

Mercantilism and the Navigation Acts
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