American Business History

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Navigation Acts

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American Business History

Definition

The Navigation Acts were a series of laws enacted by the British Parliament in the 17th and 18th centuries aimed at regulating colonial trade and ensuring that commerce benefited England. These acts mandated that certain goods produced in the colonies could only be shipped to England or English colonies, thereby reinforcing the principles of mercantilism by controlling trade routes and maximizing profits for the British economy.

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5 Must Know Facts For Your Next Test

  1. The first Navigation Act was passed in 1651, primarily aimed at curbing Dutch shipping dominance in trade.
  2. Under these acts, certain products like tobacco and sugar were restricted to being shipped only to England or its colonies, creating a system that benefited British merchants.
  3. Colonial resistance to these acts grew over time, particularly in the New England colonies, which sought more freedom in their trading practices.
  4. The enforcement of the Navigation Acts led to increased tensions between the colonies and Britain, contributing to the growing desire for independence.
  5. The acts were a key component of the mercantilist policy that aimed to ensure that trade was conducted in a manner that favored the mother country.

Review Questions

  • How did the Navigation Acts reflect the principles of mercantilism in colonial trade?
    • The Navigation Acts exemplified mercantilism by ensuring that colonial trade primarily benefited England. By mandating that specific goods could only be exported to England or English colonies, these laws controlled trade routes and profits. This not only strengthened England's economic position but also limited the colonies' ability to trade freely with other nations, thereby reinforcing the mercantilist notion that a nation's wealth is best served through tight control over its commerce.
  • Discuss the impact of the Navigation Acts on colonial attitudes towards British rule and how they contributed to revolutionary sentiments.
    • The Navigation Acts had a significant impact on colonial attitudes as they restricted economic freedom and autonomy. Many colonists grew frustrated with the limitations imposed by these laws, viewing them as unfair constraints on their ability to trade with whomever they wished. This resentment fueled revolutionary sentiments, as many colonists began to see British rule as oppressive and exploitative, ultimately leading them to seek independence from England.
  • Evaluate the long-term effects of the Navigation Acts on American economic development and their role in shaping modern trade policies.
    • The long-term effects of the Navigation Acts on American economic development were profound, as they laid the groundwork for future trade policies. While initially restrictive, these acts forced colonists to develop their own industries and look for ways to circumvent British control. This early experience with regulated trade helped shape Americaโ€™s later stance on free trade and economic independence, influencing how it approached international commerce after gaining independence. The desire for a more open trading system can be traced back to the frustrations caused by these early regulations.
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