Navigation Acts

Definition

The Navigation Acts were a series of laws passed by the English Parliament in the 17th century that regulated colonial trade and enabled England to collect taxes from the colonies. These acts aimed to ensure that trade benefitted England, reinforcing mercantilist policies and promoting the growth of joint-stock companies, which played a significant role in colonial expansion and competition among European powers.

5 Must Know Facts For Your Next Test

1. The first Navigation Act was enacted in 1651, requiring that goods imported into England or its colonies be carried on English ships or ships from the producing country.
2. These acts were designed to limit colonial trade with other nations, ensuring that commerce was conducted primarily with England, thereby enriching the British economy.
3. The Navigation Acts contributed to tensions between England and its colonies, as they restricted trade options for colonial merchants and increased enforcement measures.
4. By promoting joint-stock companies like the British East India Company, the Navigation Acts facilitated investment in overseas colonies and helped expand British imperial interests.
5. The implementation of the Navigation Acts played a crucial role in shaping colonial economies, leading to both growth in certain sectors and discontent among colonists who sought more trading freedom.

Review Questions

• How did the Navigation Acts support the rise of joint-stock companies and mercantilist policies in England?
  • The Navigation Acts supported joint-stock companies by creating a controlled trading environment that favored English merchants and investors. By ensuring that trade routes remained under British control, these laws enabled companies like the British East India Company to flourish. The mercantilist policies intertwined with the acts aimed to boost national wealth through strict trade regulations that benefited England's economy while limiting colonial economic independence.
• Discuss the impact of the Navigation Acts on colonial trade and relations between England and its colonies.
  • The Navigation Acts significantly restricted colonial trade by mandating that goods could only be shipped on English ships or ships from producing countries. This limitation created resentment among colonists who felt their economic opportunities were stifled, leading to tensions that would eventually contribute to revolutionary sentiments. The acts also fostered a dependency on British markets while encouraging smuggling as colonists sought ways to bypass these restrictions.
• Evaluate the long-term effects of the Navigation Acts on British imperialism and colonial economies in North America.
  • The long-term effects of the Navigation Acts solidified Britain's position as a dominant imperial power but also sowed seeds of discontent among American colonists. While these acts facilitated economic growth for Britain through regulated trade and profits from joint-stock companies, they also led to growing frustrations that fueled desires for independence. The enforcement of such laws ultimately contributed to a changing dynamic in British-colonial relations, setting the stage for conflicts that would shape American history.

Related terms

Mercantilism: An economic theory that emphasizes the importance of accumulating wealth through a positive balance of trade, often implemented through government regulation and colonial expansion.

Joint-Stock Company: A business entity where different stocks can be bought and owned by shareholders, which allowed for large investments in colonial ventures and the spread of financial risk.

Colonialism: The practice of acquiring control over foreign territories and exploiting them economically, culturally, and politically, often leading to the establishment of settlements and trade networks.