What was the basic economic structure established established by England
The basic economic structure established by England can be described as a mercantilist system during the 16th to 18th centuries. Mercantilism is an economic theory and practice that focused on maximizing exports and accumulating wealth through overseas trade.
Under this framework, England aimed to have a favorable balance of trade, where exports exceeded imports. The government enacted various policies to protect domestic industries, such as imposing tariffs and subsidies, which helped boost exports and reduce competition from foreign goods. They also established colonial monopolies, particularly in North America and the Caribbean, to secure exclusive trading rights and access to valuable resources.
The Navigation Acts were a series of laws passed by the English Parliament in the 17th century that reinforced mercantilist policies. These acts required all trade between England and its colonies to be carried on English ships, imposed restrictions on colonial trade with non-English countries, and mandated that certain colonial goods be sent only to England.
Additionally, the Enclosure Movement, which began in the 16th century, saw the privatization and consolidation of common lands and open fields. This shift from communal to private ownership of land helped to foster agricultural productivity and enabled the emergence of large-scale commercial farming.
Overall, the economic structure established by England during this period was characterized by a focus on overseas trade, protectionism, and the accumulation of wealth through maximizing exports.
The basic economic structure established by England was a form of capitalism known as mercantilism. Here is a step-by-step breakdown of the main characteristics of this economic system:
1. Trade and colonization: England built a global empire by establishing colonies and engaging in overseas trade. These colonies provided a steady flow of raw materials, such as tobacco, sugar, and cotton, which were exported back to England.
2. Protectionism: To maximize its economic gains, England implemented protectionist policies. This involved using tariffs, subsidies, and regulations to protect domestic industries from foreign competition and ensure a favorable balance of trade.
3. Navigation Acts: England passed a series of Navigation Acts in the 17th and 18th centuries to control colonial trade and promote English shipping. These acts required that goods imported into England and its colonies be carried on British ships, benefiting the English merchant fleet.
4. Monopoly and monopolization: England sought to establish a monopoly over certain industries, such as the East India Company's control over trade with Asia. Monopolies allowed England to exert control over markets and maximize profits.
5. Government involvement: The English government played a significant role in managing the economy. It provided subsidies and grants to support industries, established trading companies, and regulated trade with its colonies.
6. Accumulation of wealth: The primary goal of mercantilism was to accumulate wealth for the nation. England aimed to export more goods than it imported, resulting in a positive balance of trade and the accumulation of gold and silver.
Overall, the economic structure established by England during this period focused on maximizing profits through colonial exploitation, protectionist policies, and government intervention in the economy.
The basic economic structure established by England was known as mercantilism. Mercantilism was a system that was dominant in Europe from the 16th to the 18th centuries, and England adopted it as its economic doctrine during this period.
To understand mercantilism, we need to explore its key principles and policies. First and foremost, mercantilism aimed to maximize a nation's wealth and power through a favorable balance of trade. It emphasized exporting more goods than importing, leading to a surplus in the trade balance and accumulation of wealth.
To achieve this trade surplus, England implemented several policies. One was the imposition of protective tariffs or duties on imported goods, making them more expensive and less attractive to consumers. This allowed domestic industries to flourish without much competition from foreign goods. Additionally, the government provided subsidies and grants to industries that manufactured goods for export, aiming to increase production and boost exports.
Another important aspect of mercantilism was the establishment of colonies as sources of raw materials. England established colonies in various parts of the world, particularly in the Americas, to extract resources and create captive markets for their finished products. This provided a steady supply of raw materials for England's industries and ensured a market for its goods.
Furthermore, England engaged in the development of a strong navy to protect its shipping and trade routes. This allowed for the expansion of overseas trade and helped secure dominance in key strategic locations.
To sum up, the basic economic structure established by England was mercantilism, which emphasized maximizing exports, minimizing imports, and establishing colonies for resources and markets. Tariffs, subsidies, and a strong navy were key components of this economic system.