England, 1485–1603 – Henry VII, 1485–1509: Economic development: trade,…

The idea

Under Henry VII, economic development was dominated by the woollen cloth trade, which accounted for nearly 90% of English exports. Henry sought to expand trade through the Navigation Acts and treaties like the Intercursus Magnus (1496), though his 1493 trade embargo with Burgundy caused temporary economic depression and hardship for merchants. While the period generally saw agricultural and commercial prosperity, localized depressions occurred due to poor harvests or trade disruptions. Exploration was limited but significant, highlighted by royal patronage of John Cabot, whose 1497 voyage discovered Newfoundland's fishing grounds, laying early foundations for future English transatlantic ambitions.

What earns the marks

• Evaluate the dominance of the cloth trade and the role of the Merchant Adventurers in exporting finished cloth rather than raw wool.
• Assess the impact of Henry VII's foreign policy on trade, particularly the 1493 embargo on Burgundy and the subsequent Intercursus Magnus (1496).
• Analyse the extent of prosperity, noting the general stability of prices and wages alongside the growth of the domestic cloth industry.
• Identify causes of economic depression, such as the disruption of the Hanseatic League's privileges and localized agrarian distress.
• Explain the significance of John Cabot's 1497 voyage to Newfoundland in the context of early English exploration.

Common mistakes and how to put them right

• Claiming Henry VII prioritised trade above all else.

  Put it right: Recognise that Henry consistently subordinated commercial interests to dynastic security, as seen in the 1493 trade embargo with Burgundy.

• Overstating the success of English exploration under Henry VII.

  Put it right: Note that while Cabot discovered Newfoundland, Henry's support was limited and did not lead to immediate colonial expansion.

• Confusing the Intercursus Magnus with the Intercursus Malus.

  Put it right: The Intercursus Magnus (1496) restored normal trade links, whereas the Intercursus Malus (1506) was an unratified treaty heavily favouring English merchants.

Exam tips

• Use the 1493 trade embargo as a prime example of how dynastic security dictated Henry VII's economic policies.
• Contrast the growing prosperity of the cloth industry with the relative stagnation of other sectors like coal and tin.
• When discussing exploration, explicitly mention John Cabot and the discovery of Newfoundland to demonstrate precise factual knowledge.