What is the theory of mercantilism, Business Economics

 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.

 

Posted Date: 4/1/2013 2:48:35 AM | Location : United States







Related Discussions:- What is the theory of mercantilism, Assignment Help, Ask Question on What is the theory of mercantilism, Get Answer, Expert's Help, What is the theory of mercantilism Discussions

Write discussion on What is the theory of mercantilism
Your posts are moderated
Related Questions
What is social cohesion? Social cohesion: Social cohesion is regarding how united, cooperative, connected and trustful a society is. This cohesion desires tolerance for c

How has the definition of diversity changed over time? Can a diverse workforce help a company compete more effectively? How?

QUESTION a) Explain with the use of appropriate techniques how can an increase in investment spills over to other sectors in the economy and what affects the final impact on ec

QUESTION (a) Using diagrams where appropriate, explain the concepts of scarcity, choice and opportunity cost. (b) Distinguish between positive and negative externalities, il

Foundations in Business and Commerce 1. What is logistics networking? 2. Write a short note on ethics in retailing. 3. What is the concept of insurance? 4. Describ

What is social inclusion? Social Inclusion: Social inclusion implies the whole of society enjoys the advantages of economic activity (as income) and have complete access

1. Imagine that two countries, Richland and Poorland can produce just two goods, computers and coal. Assume that for a given amount of land and capital, the output of these two pro

(a) Describe and discuss the Structure Conduct Performance framework (b) The hypotheses of interest in the Structure Conduct Performance framework are as follows: Hypothesi

DEVELOPMENT THROUGH RESOURCE TRANSFER is explained below The chief idea here was that (as mentioned previous) poor countries suffered from the savings and foreign exchange gaps