IMPORT/EXPORT

• When the colonies first began in America, there were no stores available for people to go and buy things that they needed or wanted. The people often did not have the supplies to be self-sufficient, so they relied heavily on the goods shipped to them from other countries, mainly England.

• When you bring goods in from another country, you import them into your own country. Frequently, goods were imported to a major colony with a bay that was a safe place for large ships to dock. Individuals would travel to the that town to purchase goods, and then transport them to their homes in wagons or on horseback.

• Time went on, and the colonies became more self-sufficient. Crops like tobacco and rice proved to be very successful in the south, where the soil was especially rich in nutrients. Large plantations used the labor of many indentured servants and slaves to bring in plentiful harvests. It was not  long before goods began to flow in the other direction. The colonies started to export goods back to England, as well as to other countries to sell.

• As rumblings of independence started, colonists were relying less and less on goods they had to import. Local merchants did sell items from other countries, but the prices seemed to increase unreasonably as taxes were added on. Merchants began to carry more locally produced goods in trade for store credit.

• Our nation grew and expanded westward, creating a unique opportunityfor entrepreneurs to start businesses by purchasing extra supplies to take on the established routes and selling them at significantly higher prices.This economic principle of supply and demand reached its peak during the frantic westward migration when gold wasdiscovered in California. Many miners experienced the frustrations of finding small bits of gold only hand over their small fortunes to buy enough to eat a simple meal.
•  Name:__________________________________
  
  
  Answer the following questions based on the reading passage. Don’t forget to go back to the passage whenever necessary to find or confirm your answers.
  
  
  1)   Why was it necessary for the early colonists to rely on imported goods?
  2)   What is the advantage of producing goods for your own use?
  3) What is the disadvantage of producing goods for your own use? 
  4) The export of goods from the southern colonies was possible because of the use of indentured servants and slaves. Do you think it was worth the human cost?
  5) Is “supply and demand” economics fair? Explain.