How did the English expect the trade system to work in North America?

Answer 1

The Navigation Acts were an attempt to put the theory of Mercantilism into practice in the British colonies. The object of mercantilism was to minimize imports that cost the nation money, and maximize exports that made the nation money. Colonies were a means of reducing England's dependence on foreign nations. Each colony would provide a raw material to England and this would allow the nation to not have to purchase that product from another nation. By establishing colonies loyal to the Crown, Great Britain would be expanding a dependable market for the finished products coming out of British industries. The Navigation Acts required that all colonial trade be carried in vessels built and owned by English or colonial merchants. The ships had to be manned by crews composed of British seamen. The Acts also required that European nations must sell products to the colonies by first stoping at English ports where they would have to pay a customs duty (tax). The products were checked and then were permitted to travel to the colonies. All products had to go through these ports controlled by England. This made the cost of the product more expensive but protected the trade of Great Britain. Certain materials from the colonies could only be shipped in British or colonial ships and had to be sent to England first. The product was then taxed and allowed to be sent to its destination in whatever European nation. Colonial products could not be shipped directly to any foreign nation.