Fur trading is one of the main economic activities in Northern America from the late sixteenth century to the mid-nineteenth century

At this time, demand for fur is surging in Europe as it is used to make cloth and fancy hats.

Data collected from England in the eighteenth century highlights that the years from 1746 to 1763 see an increase of twelve shillings per pelt.

It has been calculated that over twenty million beaver hats were exported from England alone from 1700 to 1770.

Both trading partners in North America, natives and Europeans, provide the other a comparative advantage in the fur trade industry.

The opportunity cost of hunting beavers in Europe is extremely high: by the seventeenth and eighteenth centuries, the Eurasian beaver is near extinction in England and France.

On the other hand, traders and trappers think the wildlife in the New World is essentially limitless.

Natives make use of the trade goods received, particularly knives, axes, and guns.

The fur trade will provides a stable source of income for many Native Americans until the mid-nineteenth century, when changing fashion trends in Europe and a decline in the beaver population in North America bring about a collapse in demand for fur.

As Native Americans are pressed into alliances by the Europeans for Queen Anne's War, the Seven Years' War, the Nine Years' War, and other standing competitions among the European powers: France, Great Britain and Spain, with whom they are dealing in North America, they feel drawn into the Europeans' endemic warfare.