Q:

How did the triangular trade work?

A:

Triangular, or triangle, trade was a system of buying and selling that involved cooperation among three separate geographic areas. The arrangement began during the colonial period in New England. Some New England rum was exported to West Africa, where it was traded for slaves.

The captives obtained from this trade did not travel to New England. Instead, they were transported to the West Indies. There they were exchanged for money and molasses.

In the final step, the molasses was sent to New England, where it was used as an ingredient in the manufacture of rum.

The route between Africa and the Caribbean was known as the “Middle Passage." Ships carried their prisoners in atrocious environments. It was not unusual for 12 percent or more of the captured people to die during a crossing. The slavers accepted the losses as business expenses.

In the colonies, triangular trade was an economic boon. Massachusetts and Rhode Island, in particular, opened large numbers of rum distilleries. Ship builders were in greater demand as more vessels were needed for voyages to Africa.

England did not profit greatly from its colonies' triangular trade system. Although the ruling nation required customs fees, many businessmen, including John Hancock, smuggled the molasses into ports in order to avoid these payments.


Is this answer helpful?

Similar Questions

  • Q:

    Why do countries trade with each other?

    A:

    Because different nations have different natural resources and human capabilities, trade has become a popular method of allowing nations to get the products people need, such as when the United States exports goods like wheat and corn to Japan and imports goods like computers and cars from Japan. In this example, Japan and the U.S. engage in trade in order to sell the surplus of the things they make and gain access to the things they don't make, allowing for a balance of a wide range of goods rather than a surplus of just a few things.

      Full Answer >
    Filed Under:
  • Q:

    Why is international trade important?

    A:

    International trade allows people to pay less for products. Some areas of the world can manufacture products for less money. Other areas excel at producing high-end, innovative products.

    Full Answer >
    Filed Under:
  • Q:

    What are global trade patterns?

    A:

    Global trade patterns track ever-changing pathways in the exchange of capital, goods and services among nations. The decades leading up to 2014 saw the rise of regional trading blocs, reduced industry in many nations, the increased participation of former communist countries, and the rising stars of China and India.

    Full Answer >
    Filed Under:
  • Q:

    What does the Fair Trade logo represent?

    A:

    Items that bear the Fair Trade logo are Fair Trade certified, meaning that the price of the item covers both the cost of production and a fair living wage for the workers to cover basics such as food, shelter, clothing, education and medical care. The Fair Trade logo also represents a commitment to environmental sustainability, empowerment of small-scale producers and fair and safe working conditions.

    Full Answer >
    Filed Under:

Explore