USA HISTORY

THE VIRGINIA DYNASTY 1801 1825

EMBARGO OF 1807

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
How did the war between France and Britain, affect American business?
A
it increased trade for American shippers
B
it made America enter a depression
C
it cut off American traders from the world
D
None of the above
Explanation: 

Detailed explanation-1: -The French and Indian War began in 1754 and ended with the Treaty of Paris in 1763. The war provided Great Britain enormous territorial gains in North America, but disputes over subsequent frontier policy and paying the war’s expenses led to colonial discontent, and ultimately to the American Revolution.

Detailed explanation-2: -Britain and France had been at war since 1803. Americans had tried hard to remain neutral in this conflict and keep up communication and trade with both countries. Unfortunately, it wasn’t working. In 1806, France passed a law that prohibited trade between neutral parties, like the U.S., and Britain.

Detailed explanation-3: -In 1807, British Orders in Council mandate that US ships dock in British ports and pay a British tax before trading with any part of Europe under Napoleon’s control (compare with Navigation Acts). French seize American ships bound for or leaving England.

Detailed explanation-4: -Economically, the embargo devastated American shipping exports and cost the American economy about 8 percent in decreased gross national product in 1807. With the embargo in place, American exports declined by 75%, and imports declined by 50%-the act did not completely eliminate trade and domestic partners.

There is 1 question to complete.