Economic theory of mercantilism essay

Mercantilists believed that to maximize a nation's power, all land and resources had to be used to their highest and best useand this era thus saw projects like the draining of The Fens. Most of the mercantilist policies were the outgrowth of the relationship between the governments of the nation-states and their mercantile classes.

Shipping was particularly important during the mercantile period. Overall, however, mercantilist policies had a positive impact on Britain helping turn it into the world's dominant trader and the global hegemon.

Rima states that the theory of production is of major importance, for the creation of the largest possible export surplus requires maximum utilization of the factors of production.

mercantilism and imperialism

The goal of these thinkers was to find an economic system compatible with Christian doctrines of piety and justice. Colonial possessions should serve as markets for exports and as suppliers of raw materials to the mother country. Imperialism Where mercantilist governments manipulate a nation's economy to create favorable trade balances, imperialism uses a combination of military force and mass immigration to foist mercantilism on less-developed regions, in campaigns to make inhabitants follow the dominant countries' laws.

is mercantilism good

Thus, mercantilism held exports should be encouraged by the government and imports discouraged. Other contributing factors were the establishment of colonies outside Europe; the growth of European commerce and industry relative to agriculture; the increase in the volume and breadth of trade; and the increase in the use of metallic monetary systems, particularly gold and silver, relative to barter transactions.

Many systems have failed and many have succeeded. They focused mainly on microeconomics and on local exchanges between individuals.

Rated 7/10 based on 34 review
Mercantilism Essay