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Jan 10, 1500
MERCANTILISM BY BRENDA
Mercantilism is the economic doctrine in which government control of foreign trade is of paramount importance for ensuring the prosperity and security of the state. In particular, it demands a positive balance of trade -
Period: Jan 10, 1500 to
mercantilism
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Jan 30, 1520
WHAT IS MERCANTILISM
Mercantilism was a reaction against the economic problems of earlier times when states were too weak to guide their economies and when every town or principality levied its own tariffs on goods passing through its borders. -
How did mercantilism effect the colonies?
limited trade to england didnt allow the colonies to produce their own goods forced viginia to halt tacabo production -
EUROPEAN BY BRENDA
Mercantilism was the theory of trade espoused by the major European powers from roughly 1500 to 1800. It advocated that a nation should export more than it imported and accumulate bullion (especially gold) to make up the difference. The exportation of finished goods was favored over extractive industries like farming. -
England
England began the first large-scale and integrative approach to mercantilism during the Elizabethan Era (1558–1603). -
Proponents of Mercantilism
During the seventeenth century, adherents of absolutism also found much to embrace in mercantilism. During the age of Stuart absolutism James I (ruled 1603–1625) and Charles I (ruled 1625–1649) found it logical to accept the premise that the monarch should not only control the political and social hierarchy but should enjoy control over the economy as well. -
MercantilismNo Comments2 Like Image found at WikimediaEnrichment Resource by brenda
Mercantilism is sometimes referred to as “merchant capitalism” because merchants promoted it and benefited from it.
The various ways in which European governments acquired money came to be known as mercantilism. Thus, mercantilism was not a strict economic theory with certain rules. Instead, it reflected an evolving set of economic policies put forward by nations to serve their own interests -
mercantilism.
No general definition of mercantilism is entirely satisfactory, since it was not as much a school of thought as a collection of policies intended to keep the state prosperous by economic regulation. -
How did colonist benefit from mercantilism?
Each colony would provide raw materials to England and this would allow the nation to not have to purchase that product from another nation. By establishing colonies loyal to the Crown, Great Britain would be expanding a dependable market for the finished products coming out of British industries. The colonies would always have a market for their goods, and could buy British products from their industry at a lower cost. -
HOW DOES MERCANTILISM WORK
Similar legislation restricting transportation between colonies was passed with regard to hats in 1732, as hat production was a valued craft in England. The Wrought Iron and Steel Bill of 1750 prohibited the creation within the colonies of new steel mills, slitting mills, and tilt hammers. In addition to these restrictions, taxes became the main issue of resentment of the American colonists living under the British mercantile system. With the Townshend Acts of 1767, Parliament levied duties on -
Theory
Most of the European economists who wrote between 1500 and 1750 are today generally considered mercantilists; this term was initially used solely by critics, such as Mirabeau and Smith, but was quickly adopted by historians. Originally the standard English term was "mercantile system". The word "mercantilism" was introduced into English from German in the early 19th century -
MERCANTILISM
A later development of the feudal system, mercantile economics’ primary goal was to develop national and oligarchical wealth through policies that favored minimal imports and maximum exports. -
England became the dominant economic power in Europe.
By 1860 England had removed the last vestiges of the mercantile era. Industrial regulations, monopolies, and tariffs were abolished, and emigration and machinery exports were freed. In large part because of its free trade policies, England became the dominant economic power in Europe. -
Adam Smith,
Adam Smith, an eighteenth-century Scots professor of moral philosophy who influenced the founding fathers of the United States, was a fierce critic of mercantilism and convincing advocate of free trade. He coined the term "invisible hand" to describe how, without any central direction, in a free market economy the butcher, the baker, and the candlestick maker provide what people need. It is, he said, as though there is an invisible hand guiding them to meet people's needs. -
Mercantilism and the American Revolution
In its day, mercantilism was explained by its proponents, says economic historian Gerald Gunderson, as a "a philosophy of nation building, a series of economic controls intended to strengthen a country and its colonies against other antagonistic empires. A major tenant of this view was self-sufficiency: sources of supply--raw materials, agriculture, and industry--should be developed domestically, or in colonies, to prevent interruptions by hostile foreigners.
