How to Understand England's Mercantilistic Goals and Balance of Trade

What were TWO of England’s “mercantilistic goals” that were supported by the Virginia Company?

Colonial expansion and the quicker route to Asia which created a balance of trade

What is balance of trade?

Balance of trade is the balance between the country's export in comparison to country's import at the given period of time. It is the largest element of the balance of payment.

The balance of trade is one of several significant aspects taken into account when calculating a nation's gross domestic product. Exports are added to the total, while imports are subtracted to determine GDP. So, as a country's trade surplus grows, so does its GDP.

There are three types of balance of payment:

  • Favourable Balance of Trade
  • Unfavourable/Deficit Balance of Trade
  • Equilibrium in Balance of Trade

Colonial expansion and the quicker route to Asia which created a balance of trade are the two of England’s “mercantilistic goals”

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