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Unformatted text preview: Business in New Business in New France
Lecture Three History 113 French Colonial Policy French Colonial Policy New France becomes a royal province 1663 Economic Policy of European Powers Mercantilism Objective is to create a self sufficient and wealthy empire Colonies are to supply raw materials to mother country and to act as a market for manufactured goods. Impact on Economy and Business of Impact on Economy and Business of New France Retard Economic Development? Colony becomes dependent on export of raw materials Mercantilism never effectively implemented Lack of centralization/absolute power (Louis XIV – picture) Large, decentralized imperial bureaucracy Impact on Business in New France Impact on Business in New France Colonial Officials Motivated by personal self gain (wealth and status) – Not by Colony’s best interests Example: Louis Frontenac Lack an entrepreneurial spirit Ongoing warfare stagnates economic development Contradictions in Imperial Policy New France is low priority in the Empire Trade Economy of NF Trade Economy of NF Export Trade Economy Develops Fur trade dominates 70% of exports most years Agriculture is dominant activity of many people Small % of export income New France dependent on France for many products Deficit trade balance most years Merchants of New France Merchants of New France Merchant communities/ networks Import/Export Business Example: Robert Dugard Louisbourg Merchants (Louisbourg – Picture) Assessing Economic Development Assessing Economic Development Lack of Diversity and Reliance on Staples Additional Factors (beyond Mercantilism): Trade with Foreign Powers Craft Production Banns on manufacturing goods Example: Ship building State also encouraged small manufacturing Assessing Economic Development Assessing Economic Development Lack of Manufacturing/Diversity Additional Factors: Lack of Skilled Craftsmen Lack of Capital Few Products could be manufactured competitively in environment of NF (Quebec Lower Town Market) Population of French and British Population of French and British Colonies 1740 Assessing Economic Development Assessing Economic Development Agriculture (Sowing wheat – picture) Major economic activity of people of NF 80% of population is rural Importance of agricultural development and success Impediment: Seigneurial system Stifles entrepreneurial enterprise ...
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- Fall '09