Turn to page 19 in your ISN and answer the following questions

1. As trade with Europe and the colonies in America was established, what were some things that the wealthy entrepreneurs would need?

2. Where would they produce their items that they were trading?

3. What do you think existed between the end of the farm-centric era and the dawn of the age of factories?

Mercantilism

• Who: European Countries• What: economic theory -- nation should export more than imports

to maintain and increase wealth• How:

– import raw materials, export finished goods – strictly regulate business (guild restrictions)– limit amount of materials a worker could make in a day– Tightly regulate when items could be bought and sold (Fish Friday)

• When: 1600’s• Why: Kept control of $$ and resources in the hands of the wealthy

few and the government and the guilds• Problem: Greatly limited expansion and growth; producers were

limited, consumers were limited, economy stagnated

• What: By 18th century, guilds had lost their power, and as the wealthy became wealthier, demand for new products increased

• Why: With new demand for finished goods, Merchants responded by recognizing that a supply of products that would be in demand would be profitable

• Where: Primarily England (British Isles)• How: Merchants acted as coordinators between producers

and consumers– Merchants would purchase large amounts of raw materials (like

cotton or wool)– Supply these materials to rural carders*

• Combed the fibers to prepare them for spinning– The combed fibers were then sent to rural spinners

• Spun into thread and yarn– Merchants would take the thread or yarn to rural weavers

• Weave into cloth– Cloth taken to workers who would bleach or dye it– Merchants would take finished cloth and sell it to consumers

Merchants used their profits to purchase more materials which allowed cycle to continue

Cottage Industry

Comic Strip

• Create a 3-panel (or more) cartoon/comic strip depicting the cottage industry system. You may use any item (including wool)

• Must include steps necessary to take product from raw materials to finished product

• Must use color and words• Must be neat