North American Economy

Definition

The North American Economy refers to the economic activities and systems present in North America, characterized by diverse sectors such as agriculture, manufacturing, and services. The economy has evolved through various stages, influenced by factors such as colonization, trade patterns, and technological advancements, particularly during the early periods of European settlement and expansion.

5 Must Know Facts For Your Next Test

1. The North American Economy in its early stages was heavily influenced by European mercantilist policies, which sought to benefit the mother countries by regulating colonial trade.
2. Colonial economies in North America varied significantly by region; the New England colonies focused on fishing and shipbuilding, while the Southern colonies relied on cash crops like tobacco and cotton.
3. The introduction of enslaved Africans into the Southern colonies was a crucial factor in developing plantation economies, leading to significant social and economic ramifications.
4. Trade with Indigenous peoples was vital for European settlers as they sought fur and other resources, resulting in complex economic relationships that often led to conflict.
5. As technology advanced, particularly in agriculture and transportation, the North American Economy began transitioning towards more industrialized methods by the late 18th century.

Review Questions

• How did mercantilism shape the development of the North American Economy during the colonial period?
  • Mercantilism greatly influenced the North American Economy by enforcing strict regulations on colonial trade. Colonies were expected to produce raw materials for export to Europe while importing manufactured goods from the mother country. This created an economic dependence that restricted colonial economic growth and led to resentment among colonists who sought greater autonomy over their economic activities.
• Discuss the impact of the Triangular Trade on the economies of North America and its relationship with Africa and Europe.
  • The Triangular Trade established a significant network connecting North America, Africa, and Europe, fundamentally impacting the economies involved. In North America, it facilitated the growth of plantation economies through the forced labor of enslaved Africans, who were transported to work on cash crop farms. Meanwhile, Europe benefited from raw materials sourced from North America while providing manufactured goods to both Africa and North America. This trade system intertwined these regions economically and socially but also perpetuated human suffering due to slavery.
• Analyze how regional differences in early North American economies contributed to varying societal structures and conflicts among colonies.
  • Regional differences in early North American economies led to distinct societal structures that shaped interactions within and between colonies. For example, the agricultural focus in Southern colonies fostered a plantation system reliant on slave labor, creating a hierarchical society that prioritized wealth accumulation through cash crops. In contrast, New England's economy revolved around trade and small-scale farming, promoting community-oriented societies. These disparities often resulted in conflicts over land use, labor systems, and governance styles as differing economic interests clashed in shaping colonial policies and identities.

Related terms

Mercantilism:

An economic theory that emphasizes the importance of accumulating wealth, primarily gold and silver, through a favorable balance of trade and government regulation.

Triangular Trade:

A historical trade system involving three regions—Europe, Africa, and the Americas—where goods, slaves, and raw materials were exchanged, significantly impacting the economies of the involved regions.

Subsistence Farming:

A type of farming where families grow enough food to feed themselves, often with little surplus for trade or sale, common in early North American settlements.