What is Mercantilism ?
Welcome to Answerclub.org
Questions | Answers | Discussions | Knowledge sharing | Communities & more.
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Questions | Answers | Discussions | Knowledge sharing | Communities & more.
Mercantilism was an economic theory and practice that emerged in Europe during the 16th and 17th centuries. It emphasized the accumulation of wealth and power through trade and colonization. The core principles of mercantilism include:
1. Export-oriented economy: Encourage exports and limit imports to accumulate wealth in the form of gold and silver.
2. Trade surplus: Strive for a trade surplus, where the value of exports exceeds the value of imports.
3. Colonial expansion: Establish colonies to access new resources, markets, and labor.
4. State control: The government plays an active role in regulating trade, industry, and commerce.
5. Protectionism: Impose tariffs, quotas, and other trade barriers to protect domestic industries.
Mercantilism was practiced by European powers, including Britain, France, Spain, and the Netherlands, during the Age of Exploration and the rise of capitalism. It led to the establishment of trade monopolies, colonization, and conflicts over resources and markets.
Mercantilism’s legacy can be seen in modern economic policies, such as protectionism and industrial protection, but it has largely been replaced by free trade and globalization.