Mercantilism -- Definition for Kids

History Illustrated

15 Aug 202205:17

EducationalLearning

32 Likes 10 Comments

TLDRMercantilism, an economic system initiated by European powers during the Renaissance, aimed at wealth accumulation through colonization and trade monopolies. It led to the establishment of colonies that served as markets and sources of raw materials, which were then manufactured into goods in Europe. This system resulted in Europe's global dominance, the spread of Christianity, and the beginning of industrialization. However, it also caused significant social, cultural, and environmental impacts, including slavery, the spread of diseases, and the displacement or extermination of indigenous cultures. Mercantilism shaped the world's political and economic landscape for centuries until the post-WWII era, when colonies gained independence and the system collapsed.

Takeaways

🏛 Mercantilism was an economic system initiated by European powers, primarily led by Spain, France, and England, with other countries like Portugal and the Dutch also involved.
🌏 It emerged during the transition from the Middle Ages to the Renaissance, as Europeans began to explore and colonize new lands.
💰 The main goal of mercantilism was to accumulate wealth and power for the mother country through the exploitation of colonies' resources and markets.
🛍️ Colonies served as both new markets for European goods and sources of raw materials, which were then manufactured into finished goods in Europe.
🚫 Trade restrictions were imposed on colonies, requiring them to trade exclusively with their mother country, thus centralizing wealth in Europe.
🌳 The system led to the spread of European culture, religion, and legal systems, with Christianity becoming the world's largest religion.
🌍 Mercantilism contributed to Europe becoming the dominant global power, with colonies on every continent except Antarctica.
🏭 It also facilitated the onset of industrialization, which had profound and lasting impacts on the lives of people worldwide.
🔄 The system caused significant environmental changes, including the exchange of plants, animals, and resources across the globe.
📉 Mercantilism had negative consequences, including the enslavement and displacement of millions of people and the conquest or extermination of indigenous cultures.
🏙️ Politically, it reshaped the world in the image of European legal systems and values, influencing the governance structures of other countries.
🕊️ The decline of mercantilism began after World War II, as colonies gained independence and the once powerful European empires lost their control.

Q & A

What is mercantilism?
-Mercantilism is an economic system that was primarily led by European powers, such as Spain, France, and England, during the Renaissance. It involved the colonization of new lands and the exploitation of these territories to bring back wealth and power to the mother country.
Which European countries were the main players in mercantilism?
-The main players in mercantilism were Spain, France, and England, but other significant participants included Portugal and the Dutch, with most European countries involved in some capacity.
What was the purpose of establishing colonies under mercantilism?
-The purpose of establishing colonies under mercantilism was to create new markets for selling goods, collect raw materials from the colonies, and manufacture these into finished goods in Europe, thereby concentrating wealth and power in the mother country.
How did the wealth from colonies contribute to the power of European countries?
-The wealth from colonies, such as gold and exotic goods, allowed European countries to become very wealthy. This wealth translated into more power for the leaders, making their countries respected and influential on the international stage.
What was the economic impact of mercantilism on Europe?
-Mercantilism led to Europe becoming the dominant power in the world, with colonies on every continent except Antarctica. It also initiated the process of industrialization, which had a profound and lasting impact on the lives of people.
What were the social and cultural impacts of mercantilism?
-Mercantilism led to the spread of Christianity throughout the world, making it the largest religion today. It also resulted in the enslavement and forced relocation of millions of people, which still affects many countries socially and culturally.
How did mercantilism affect the political landscape of the world?
-Politically, mercantilism reshaped the world in the image of European legal systems and values inherited from ancient Greece and Rome. Other countries either adopted or were forced to use similar systems to engage with the rest of the world.
What was the environmental impact of mercantilism?
-Mercantilism led to an unprecedented exchange of plants, animals, and resources around the world. This exchange allowed for new agricultural developments and contributed to a significant increase in the world's population.
How did the rules of trade under mercantilism affect the colonies?
-Under mercantilism, colonies were not allowed to trade freely with other countries. They were required to trade exclusively with their mother country, which helped concentrate wealth and power in Europe.
What was the ultimate fate of the European colonies established under mercantilism?
-After World War II, European powers could no longer maintain control over their colonies due to the destruction caused by the war. One by one, colonies declared independence, and the once powerful European empires lost their grip, leading to the collapse of the colonial system within a few decades.

Outlines

00:00

🌏 Mercantilism: The Economic System of European Colonialism

This paragraph introduces mercantilism as an economic system initiated by European powers, primarily Spain, France, and England, with other nations like Portugal and the Dutch also participating. It emerged during the Renaissance as Europe transitioned from the Middle Ages and began exploring the world. The paragraph explains how colonization led to wealth accumulation through the exploitation of new territories' resources, which were then turned into manufactured goods in Europe. The system fostered intense competition and rivalry among European nations, leading to significant power and wealth concentration in the 'mother countries.' Mercantilism had profound effects on the world, including the spread of European legal systems, Christianity, and the industrial revolution, as well as the enslavement and displacement of populations, and the environmental exchange of species and resources.

05:00

🏛 The Collapse of European Colonial Power

This paragraph discusses the decline of European colonial powers post-World War II. It describes how, one by one, colonies declared independence, leading to the rapid disintegration of centuries-old colonial empires within a few decades. The paragraph highlights the end of an era where European nations, once dominant and powerful, found themselves unable to maintain control over their far-flung territories, marking a significant shift in global power dynamics.

Mindmap

Keywords

💡Mercantilism

Mercantilism is an economic system that was prevalent in Europe from the 16th to the 18th century. It was characterized by the belief that a nation's wealth and power were best served by accumulating monetary reserves, often through trade surpluses. In the video's context, mercantilism is the central theme, illustrating how European powers like Spain, France, and England sought to expand their wealth and influence by establishing colonies and controlling trade.

💡Economic System

An economic system refers to the way in which a society organizes and manages the allocation of its resources and the production, distribution, and consumption of goods and services. In the script, the mercantilist economic system is highlighted as a driving force behind European exploration and colonization, aiming to increase national wealth through trade and resource exploitation.

💡European Powers

The term 'European Powers' refers to the major European nations that held significant influence and control over global affairs during the era of mercantilism. The script mentions Spain, France, and England as the 'big three,' alongside Portugal and the Dutch, who were instrumental in the colonization and exploitation of newly discovered territories.

💡Colonization

Colonization is the process of a more powerful nation taking control over a less developed territory, often with the aim of economic or political expansion. The script describes how European countries began to colonize parts of Africa and the Americas during the 1400s, marking the beginning of the mercantilist era where territories were claimed for the wealth they could bring back to the mother country.

💡Raw Materials

Raw materials are the basic resources that are used to produce goods. In the context of the video, raw materials refer to the natural resources extracted from colonies, such as lumber, which were then sent back to Europe to be manufactured into finished products. This process was a key component of the mercantilist strategy to accumulate wealth.

💡Manufactured Goods

Manufactured goods are products that have been processed or altered from their raw state to become something usable or valuable. The script explains how European merchants would take raw materials from their colonies and transform them into manufactured goods, such as furniture from lumber, which could then be sold for profit, contributing to the wealth of the mother country.

💡Trade Restrictions

Trade restrictions refer to the rules and limitations imposed on trade between different entities. In the video, it is mentioned that under the mercantilist system, colonies were not allowed to trade freely with other nations but were required to trade exclusively with their mother country. This policy was designed to concentrate wealth and power within the European nations.

💡Wealth Concentration

Wealth concentration is the accumulation of wealth in the hands of a few, often resulting from economic policies or systems. The script describes how the mercantilist system was designed to concentrate wealth in the mother countries by controlling trade and resource exploitation, thereby increasing their power and influence.

💡Industrialization

Industrialization is the period of social and economic change that transformed agricultural societies into industrial ones. The script notes that industrialization began during the mercantilist era, under the leadership of European powers, which had a profound and lasting impact on the way of life for people around the world.

💡Cultural Impact

Cultural impact refers to the effects that a particular culture has on another, often as a result of contact or influence. The video script discusses the spread of Christianity and the reshaping of global legal systems and values as part of the cultural impact of European mercantilism, which had lasting effects on societies worldwide.

💡Environmental Exchange

Environmental exchange refers to the transfer of plants, animals, and other resources from one region to another, often as a result of exploration and colonization. The script mentions the environmental exchange that occurred during the mercantilist era, which led to the introduction of new species and resources around the world, such as tomatoes in Italian cuisine.

Highlights

Mercantilism is an economic system initiated by European powers primarily led by Spain, France, and England.

European countries began exploring the world during the Renaissance, leading to colonization of new lands.

Colonization allowed European countries to bring back wealth in the form of gold and exotic goods.

Wealth accumulation led to increased power for the leaders and respect among neighboring countries.

Intense rivalry and competition emerged among European countries for control over new territories.

Established colonies served as new markets for selling goods and sources of raw materials.

Colonies were restricted to trade only with their mother country, concentrating wealth in Europe.

Mercantilism enabled Europe to grow powerful over centuries, becoming the dominant global power.

Industrialization began under the leadership of European powers, impacting every person's life.

Christianity spread worldwide as a result of European colonization.

Millions of people were enslaved and displaced due to European colonization.

Some civilizations were completely conquered or exterminated through disease or war.

Politically, Europe reshaped the world in its image, influencing legal systems and values.

Environmental impacts included the exchange of plants, animals, and resources across the globe.

Cultural views on land ownership changed, enabling agricultural development and population growth.

Mercantilism's effects are still evident today, influencing modern economic and political structures.

The decline of European colonial power began after World War II, leading to the independence of colonies.

Transcripts

Browse More Related Video

Mercantilism explained

MERCANTILISM, Explained [AP Euro Review—Unit 3 Topic 4]

The ECONOMICS of EMPIRE Building [AP World History Review—Unit 4 Topic 5]

Global ECONOMIC Changes from 1750-1900 [AP World History Review—Unit 6 Topic 4]

Rationales for IMPERIALISM [AP World History] Unit 6 Topic 1 (6.1)

La ÉPOCA COLONIAL en Hispanoamérica - Resumen | Organización Política, Económica y Social.

Mercantilism -- Definition for Kids

Takeaways

Q & A

What is mercantilism?

Which European countries were the main players in mercantilism?

What was the purpose of establishing colonies under mercantilism?

How did the wealth from colonies contribute to the power of European countries?

What was the economic impact of mercantilism on Europe?

What were the social and cultural impacts of mercantilism?

How did mercantilism affect the political landscape of the world?

What was the environmental impact of mercantilism?

How did the rules of trade under mercantilism affect the colonies?

What was the ultimate fate of the European colonies established under mercantilism?