Colonial economies

Definition

The economic systems established in European colonies, primarily based on extracting raw materials and agricultural products for export to the mother country. Colonial economies followed mercantilist principles, where colonies existed to enrich the colonizing nation through favorable trade balances.

Examples

  • Southern colonies grew tobacco, rice, and indigo as cash crops using enslaved labor
  • The triangular trade connected Europe, Africa, and the Americas in a network of goods, enslaved people, and raw materials
  • The Navigation Acts required colonists to trade only with England

Related Terms

Colonial settlements Columbian exchange Slavery origins Market revolution

Study This Concept

Practice colonial economies with free review games in these units:

AP US History Unit 2: 1607-1754: Colonial America