Final Exam Study Guide

The puritan revolution and the civil war in england

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Unformatted text preview: advantage in growing particular crops or particular economic activities? o New England  ­ shipping, fishing, and ships/ship stores o Mid ­Atlantic  ­ meats, grains, wheat, and other light manufactures o Chesapeake  ­ tobacco o Lower South  ­ rice What is the pattern of specialization across the colonies? Trade between the colonies was important because it shaped the development of economic institutions and specialization of goods. Why can specialization lead to economic growth? Specialization can lead to economic growth through trade of goods that you have a comparative advantage in producing. If one area has a comparative advantage in producing a good then they can specialize in producing it and trade it to other areas of the world that cannot produce it. This leads to higher incomes in that region allowing the economy to grow and directly relates to the Staple Theory. Commercial Development Why did some areas develop more sophisticated commercial systems than other places? New England and the middle colonies had the most sophisticated commercial systems because they often traded with the Caribbean. They were not able to use the commercial systems like the intermediaries or insurance agencies set up in England at the time so they were forced to start their own in cities like New York and Boston. This was the groundwork and start of America becoming more independent from the British. What is a bill of exchange? A bill of exchange is a written order to pay a sum of money on a given date to a third party used to finance the movement of goods around the Atlantic. How was that connected to regional specialization in particular products? The New England colonies became spets in trading and shipping and started to form many middle man services and commercial systems such as insurance, shipping, warehousing, banking, and finance that were independent from England despite the fact that they had to work around things like the Navigation Acts and other British rules. Events in Britain that affected the colonies The Puritan revolution and the Civil War Due to the Puritan Revolution and the Civil War going on in Britain the British were forced to focus more on the issues going on in there country rather than the ones going on in the colonies. The only active role from the British that was seen in the colonies at this time was the charters. The Puritan Revolution and the Civil War in England also caused migration to the colonies to slow mightily, which now gave the colonies an opportunity to step up their trading game and be a bit more independent. This was evident in New England with fish. The restoration of the monarchy in 1660 After the restoration of the monarchy in 1660 the British started to play a more active role and pay more attention to what was going on in the colonies. The Dutch Wars The Dutch Wars resulted in three things: 1. The Dutch lost New Amsterdam and were completely removed from...
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