Excerpt from Adam Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations, 1776
The general advantages which Europe, considered as one great country, has derived from the discovery and colonization of America, consist, first, in the increase of its enjoyments; and, secondly, in the augmentation of its industry.
The surplus produce of America, imported into Europe, furnishes the inhabitants of this great continent with a variety of commodities which they could not otherwise have possessed; some for conveniency and use, some for pleasure, and some for ornament, and thereby contributes to increase their enjoyments.
The discovery and colonization of America, it will readily be allowed, have contributed to augment the industry, first, of all the countries which trade to it directly, such as Spain, Portugal, France, and England; and, secondly, of all those which, without trading to it directly, send, through the medium of other countries, goods to it of their own produce. . . . All such countries have evidently gained a more extensive market for their surplus produce, and must consequently have been encouraged to increase its quantity.
The exclusive trade of the mother countries tends to diminish, or, at least, to keep down below what they would otherwise rise to, both the enjoyments and industry of all those nations in general, and of the American colonies in particular. It is a dead weight upon the action of one of the great springs which puts into motion a great part of the business of mankind. By rendering the colony produce dearer in all other countries, it lessens its consumption, and thereby cramps the industry of the colonies, and both the enjoyments and the industry of all other countries, which both enjoy less when they pay more for what they enjoy, and produce less when they get less for what they produce.
What does this passage suggest about the impact of the Columbian Exchange that developed in the 1500s?
A. ****
It encouraged colonization of the Americas.
B.
It served to benefit mercantilist powers in Europe.
C.
It lessened competition among European monarchs.
D.
It provided new economic opportunities for Native Americans.
Also, for the same excerpt, Which significant part of the economic system described in the excerpt does Smith omit?
A. ****
the import of European diseases to the Americas
B.
the import of spices from the East Indies to Europe
C.
the export of Africans as slave labor to the Americas
D.
the export of cash crops from the Americas to Europe
I think it's either A or C, what do you guys think????
The correct answer is B. It served to benefit mercantilist powers in Europe.
This passage from Adam Smith's book suggests that the Columbian Exchange, which refers to the transfer of goods, people, ideas, and diseases between the Old World (Europe) and the New World (the Americas) following Christopher Columbus' voyages in the 1500s, had a significant impact on the European powers. Smith argues that Europe, as one great country, benefited from the discovery and colonization of America in two ways: an increase in enjoyments and an augmentation of industry.
Firstly, the surplus produce from America imported into Europe provided Europeans with a variety of commodities that they could not have obtained otherwise. This increased their enjoyments as they gained access to conveniences, pleasures, and ornaments. Secondly, the trade with America directly or indirectly through other countries increased the industry of the European countries involved. The colonies created a market for the surplus produce, encouraging the European powers to produce more.
However, Smith also criticizes the exclusive trade policies of the mother countries. He argues that these policies, which aimed at monopolizing and controlling the trade with the colonies, actually hindered the enjoyments and industry of both the European nations and the American colonies. The colonies were affected by higher prices for their produce in other countries, reducing consumption and cramping their industry. This, in turn, impacted the enjoyments and industry of other countries, which had to pay more for what they enjoyed and produce less due to decreased demand.
Therefore, the passage suggests that the Columbian Exchange, while providing new economic opportunities and benefits, primarily served to benefit the mercantilist powers in Europe. The European powers were able to increase their enjoyments and industry through trade with the Americas, but the exclusive trade policies imposed by the mother countries limited competition and hindered the overall economic potential of both Europe and the American colonies.