French Mercantilism

Definition

French mercantilism refers to the economic theory and practice that dominated France during the Age of Exploration, advocating for a strong state control over trade and the accumulation of wealth through a favorable balance of trade. This system aimed to enhance national power by maximizing exports and minimizing imports, fundamentally shaping France's colonial ambitions and its approach to establishing settlements in North America and the Caribbean.

5 Must Know Facts For Your Next Test

1. French mercantilism was heavily influenced by Jean-Baptiste Colbert, who served as finance minister under King Louis XIV and implemented policies to boost French economic strength.
2. The system aimed to establish colonies that could supply raw materials to France while serving as markets for French manufactured goods.
3. The French crown supported joint-stock companies, such as the Compagnie des Indes Occidentales, to promote colonial ventures and expand trade networks.
4. France's mercantilist policies often led to conflict with other European powers, particularly Britain and Spain, as nations competed for resources and dominance in overseas markets.
5. By focusing on accumulating gold and silver through exports, French mercantilism laid the groundwork for future economic policies that would influence France’s role in global trade.

Review Questions

• How did French mercantilism shape France's colonial strategy during the Age of Exploration?
  • French mercantilism significantly shaped France's colonial strategy by emphasizing the need for colonies to serve both as sources of raw materials and as markets for French goods. This economic approach motivated France to establish settlements in places like Canada and the Caribbean, where they could exploit natural resources while promoting trade with the mother country. The goal was to create a self-sufficient economy that reinforced national power through wealth accumulation.
• Discuss how Jean-Baptiste Colbert's policies exemplified the principles of French mercantilism.
  • Jean-Baptiste Colbert exemplified French mercantilism through his focus on state intervention in the economy, promoting protectionist measures to encourage domestic production. He implemented tariffs on imports to reduce competition for French manufacturers while investing in infrastructure to support trade routes. His approach also included fostering industries that produced goods for export, effectively intertwining economic policy with France's colonial ambitions.
• Evaluate the long-term impacts of French mercantilism on France's economy and its global trade relationships.
  • The long-term impacts of French mercantilism on France's economy were profound, establishing a framework for state involvement in economic affairs that persisted beyond the Age of Exploration. By prioritizing exports over imports and focusing on colonial resources, France laid a foundation for its later industrialization. However, this approach also led to rivalries with other European powers, shaping global trade relationships characterized by competition for resources. The conflicts arising from these mercantilist policies influenced geopolitical dynamics well into modern times.

Related terms

Colbertism: An economic policy associated with Jean-Baptiste Colbert, which emphasized state intervention in the economy, protectionist measures, and the support of domestic industries.

Triangular Trade:

A historical term describing the transatlantic trade network that connected Europe, Africa, and the Americas, facilitating the exchange of goods, slaves, and raw materials.

Colonial Economy:

The economic system in colonial territories that revolved around resource extraction, agriculture, and trade, heavily influenced by the mercantilist policies of the European powers.