What is the theory of mercantilism, Business Economics

Assignment Help:

 Mercantilism was the economic philosophy underlying English colonial policy. The object of mercantilism was to enhance the wealth of the Mother County (Great Britain) in gold & silver. To complete that goal, a favorable balance of trade was desired. That means that a nation would sell more than it would obtain, therefore creating a surplus in the treasury. The name of the philosophy points out the significant is of merchants in this policy. Merchants would sell products to foreign nations and purchased items to be sold within the nation. Colonies played a very important role in mercantilism. A colony would supply the essential raw materials to the industries of England and the colonists would be a source of income to the nation due to they would buy the finished products and supplies they required to grow, from the Mother Country. The ideal was to become self-sufficient. The nation would make everything its people required and buy nothing from foreign nations. Hence the ideal could not be accomplished in the actual world of economics, the object of mercantilism was to minimize imports that cost money and maximize exports and the trade that brought money in to the nation.

 


Related Discussions:- What is the theory of mercantilism

What are the major economic factors, International oil has been described a...

International oil has been described as the lifeblood of industrial society. A National Security Council paper in 1953 noted that American Based multinational oil companies were in

Calculate the maximum amount , Tri-City Industries is considering two possi...

Tri-City Industries is considering two possible capital projects. Project A requires an initial investment of $240,000 and provides cash flows before tax of $120,000 in year one, $

What is a developing economy, What is a developing economy? To say a co...

What is a developing economy? To say a country is developed or developing needs indicators. For illustration: • The World Bank classification utilises one economic indicator

Problem of agricultural price instability in countries, Is agricultural pri...

Is agricultural price instability a problem for Less Developed Countries? Problem of agricultural price instability for LDCs: a. Several Less Developed Countries have a com

Is structural change a problem, Is structural change a problem? Econom...

Is structural change a problem? Economies are dynamic and adapt to meet evolving consumer wants needs. This means resources are moved from use to use in response to, say, chan

Identify if an institution or development policy work, How do we identify i...

How do we identify if an institution or development policy works? Institutions and policies have goals. Successful policies and institutions meet stated objectives in a specif

Illustration of development process affected on culture, Illustrate some ex...

Illustrate some example of the development process affected on culture. Examples of the development process affected on culture: • Foreign Direct investment (FDI) and IMF st

Business Economics, (a) Explain why each of the following factors may influ...

(a) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the comm

Regulation and deregulation, how does the buying and selling of stock fit t...

how does the buying and selling of stock fit the model for perfect competition?

How is business cycle essential in downturns and upturns, How is business c...

How is business cycle essential in economic downturns and upturns? The Business Cycle: It is the short-run alternation between economic upturns and downturns. A

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd