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

Monopolistic Competition, Describe the characteristics of Monopolistic Comp...

Describe the characteristics of Monopolistic Competition

Barriers or hindrances with presenting christian gospel, Barriers or Hindra...

Barriers or Hindrances with Presenting Christian Gospel 1.) What practical steps could be taken to build a relationship with a follower of this worldview who might be a co-wor

Economic problems, what are the economic problems facing any individual in ...

what are the economic problems facing any individual in the economy

Essay, 1500 word essay

1500 word essay

Methods of sustaining a competitive advantage, The framework for the assign...

The framework for the assignment should be relevant to the websites you have chosen and should consider one or two of the following: Segmentation methods to meet the needs of

Procurement and delivery strategies, The Scenario You have just been app...

The Scenario You have just been appointed as the procurement consultant for a large multinational with operations based in Brisbane. Your superior, the Chief Financial Officer (

Potential benefits and drawbacks by adding employees to team, Your project ...

Your project is behind schedule and you are seeing adding extra employees to the team. What would be the potential benefits and drawbacks of this approach? Given that the slipp

What factors affect population change, What factors affect Population Chang...

What factors affect Population Change? Population growth is affected by given factors: • Births from the 1960s birth rates have declined quickly inmost LDCs except which in

Statistically significantly, Suppose that historically, the proportion of p...

Suppose that historically, the proportion of people who trade in their old car to a car dealer when purchasing a new car is 48%. Over the previous 6 months, in a sample of 115 new-

Scarcity and original cost, define scarcity and opportunity cost? what rol...

define scarcity and opportunity cost? what role these two concepts play in the making of decision making?

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