Question

How did the practice of mercantilism lead to economic prosperity in South Carolina?

Answer 1

Thanks to the practice of mercantilism, England controlled trade in a way that allowed them to export more goods than they imported. South Carolina was both a source of raw materials and also a market for British manufactured goods. This allowed England to become less dependent on foreign trade with countries such as China and improved the balance of trade in favour of England.

By English law, rice and Indigo were sold solely to England, however, the English did not enforce this law, opening up the marktplace for rice. This gave South Carolina a secure market in England and a wider market in the world.

Answer 2

Mercantilism is defined as the economic system in which the mother country controls trade with her colonies in order to increase her own prosperity, this because mercantilist countries tend to export more goods than the ones imported by them. Such economic system was practiced by England during the American colonial period.

In the particular case of South Carolina, mercantilism served not only as a market for British manufactured goods but also as a source of raw materials for such nation. Specifically, rice and cobalt were listed as products which could only be sold to England. This situation benefited American colonists since in this way a market for such products was secured, helping South Carolina to prosper economically thanks to this payment of additional money.