How did the triangular trade work?
Quick Answer
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.
Continue Reading
Full Answer
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.
Learn more about EconomicsRelated Questions
-
Q:
When did the triangular trade start?
A: Triangular trade started in the mid-15th century. Trading took place between America, Europe and Africa. It was also referred to as the Trans-Atlantic trad... Full Answer >Filed Under: -
Q:
What are characteristics of a centrally planned economy?
A: A centrally planned economy is characterized as an economic system in which the government dictates and regulates all areas of economic activity, such as t... Full Answer >Filed Under: -
Q:
What are some interesting facts about the Bermuda Triangle?
A: Some interesting facts about the Bermuda Triangle include that it is a triangular section of the Atlantic Ocean with the points of the triangle landing in ... Full Answer >Filed Under: -
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 product... Full Answer >Filed Under:
