...Introduction Mercantilism is the main economic system used during the sixteenth to eighteenth centuries. The main goal was to increase a nation’s wealth by imposing government regulation concerning all of the nation’s commercial interests. It was believed that national strength could be maximized by limiting imports via tariffs and maximizing exports. Mercantilism dominated the major European trading nations. This “mercantile system” based on the premise that national wealth and power was best served by increasing exports and collecting precious metals in return. It superseded the medieval feudal organization in Western Europe; especially in the Netherlands, France and England. Domestically, this led to some of the first instances of significant government intervention and control over the economy and it was during this period that much of the modern capitalist system was established. Internationally, mercantilism encouraged the many European wars of the period and fueled European imperialism. Historical Background of Mercantilism: Mercantilist held that a nation’s wealth consisted primarily in the amount of gold and silver in its treasury. Accordingly Mercantilist government imposed extensive restriction on their economics to ensure a surplus of exports over imports. That system thinks that if one country had more gold than another, it was necessarily better off. Such ideas were attractive to some government, such as Britain, French. There are some amusing stories of mercantilism...
Words: 1487 - Pages: 6
...Mercantilism is an economic theory practice, commonly used in Europe from the 16th to the 18th century that promoted governmental regulation of a nation’s economy for the purpose of augmenting state power at the expense of rival national powers. It was the economic counterpart of political absolutism.[1] It includes a national economic policy aimed at accumulating monetary reserves through a positive balance of trade, especially of finished goods. Mercantilism dominated Western European economic policy and discourse from the 16th to late-18th centuries.[2] Mercantilism was a cause of frequent European wars and also motivated colonial expansion. Mercantilist theory varied in sophistication from one writer to another and evolved over time. High tariffs, especially on manufactured goods, are an almost universal feature of mercantilist policy. Other policies have included: Building overseas colonies; Forbidding colonies to trade with other nations; Monopolizing markets with staple ports; Banning the export of gold and silver, even for payments; Forbidding trade to be carried in foreign ships; Export subsidies; Promoting manufacturing with research or direct subsidies; Limiting wages; Maximizing the use of domestic resources; Restricting domestic consumption with non-tariff barriers to trade. Mercantilism in its simplest form was bullionism, but mercantilist writers emphasized the circulation of money and rejected hoarding. Their emphasis on monetary metals accords with...
Words: 4905 - Pages: 20
...2009 Samson Diegbegha 5/26/2009 Moscow University Touro; Course Title; History of Philosophy, Project Titled; History of Capitalism By; Professor; Marion Wyse Table of content 1:1…….…..………………………………………………………………………Introduction 1:2..………….………………………………………………………………capitalism history 1.3.…….………………………………………..….. Merchant capitalism and mercantilism 1:4……………………………………………….. Transition from 'feudalism' to capitalism 1:5……………………………………………………. Industrial capitalism and laissez-faire 1:6…………………………………………… Finance capitalism and monopoly capitalism 1:7……………………………………………… Capitalism following the Great Depression 1:8……………………………...………………………………………………... Globalization 1:9………………………..………………………………………………………… conclusion 1:10……………………………………………………………………….…………. References The History of capitalism 1; 1 Introduction | Capitalism as we all know is an economic system of producing wealth in which the wealth is privately owned. in capitalism, the land, labor, and capital are owned and operated by private individuals who are trading for one purpose that is, the generation of more income or profits in a legitimate way without force or fraud, by singly or jointly, and investments, distribution, income, production, pricing and supply of goods, commodities and services are determined by voluntary private decision in a market economy. A distinguishing feature of capitalism is that each person is entitled to his or her own labor and therefore is allowed to sell the use of it to any employee...
Words: 3339 - Pages: 14
...(Western) Colonialism: A political-economic phenomenon whereby various European nations explored, conquered, settled, and exploited large areas of the world. The purposes of colonialism included economic exploitation of the colony's natural resources, creation of new markets for the colonizer, and extension of the colonizer's way of life beyond its national borders. In the years 1500 – 1900 Europe colonized all of North and South America and Australia, most of Africa, and much of Asia by sending settlers to populate the land or by taking control of governments. The first colonies were established in the Western Hemisphere by the Spanish and Portuguese in the 15th – 16th centuries. The Dutch colonized Indonesia in the 16th century, and Britain colonized North America and India in the 17th – 18th centuries. Later, British settlers colonized Australia and New Zealand. Colonization of Africa only began in earnest in the 1880s, but by 1900 virtually the entire continent was controlled by Europe. The colonial era ended gradually after World War II; the only territories still governed as colonies today are small islands. http://www.answers.com/topic/colonialism#ixzz1lYMQdYfY http://en.wikipedia.org/wiki/Colonialism Colonialism is the establishment, maintenance, acquisition and expansion of colonies in one territory by people from another territory. It is a process whereby the metropole claims sovereignty over the colony, and the social structure, government, and economics of...
Words: 2538 - Pages: 11
...discovery, Spain got a religious justification fro conquest and an army of seasoned soldiers, named conquistadores. Also, rulers in Spain developed efficient techniques for controlling new colonies. The conquistadores left a trail of destruction by attacking native villages and killed or captured the inhabitant since they preferred seeking gold and slaves to creating permanent settlements. In 1519, some Spanish soldiers landed on the coast of Mexico. Three years later, these Spanish soldier conquered Aztec empire. The three factors of Spanish victory were technological advantages, division within the Aztec empire, and disease. Later, some other Spanish soldiers conquered a richer empire, Inca empire. By 1550, Spain’s New World empire, which stretched from the Caribbean through Mexico to Peru, was administered from Spain by the Council of the Indies. The council enacted laws for the empire and supervised an elaborate bureaucracy to maintain political control and extract wealth from the land and its people. Then, two expedition went to north America to find gold and silver but they did not find any gold and silver. So Spain stopped to extend its empire and just maintained two precarious footholds in north of Mexico. By a large number of gold and silver flowing into Spain, it became the richest and most powerful state in Europe. However, these American treasure undermined Spanish predominance. Many leading merchants who refused to become Christian was expelled from Spain. The remaining...
Words: 1532 - Pages: 7
...national, religious and civil wars, made memorable for their particularly savage brutality. From ashes and smoke, the national state was formed and enshrined in the Reformation-inspired contractual "natural law" philosophy of Grotius, Hobbes and Pufendorf. With the rise of the State, the 17th Century marked the ascendancy of two classes of peoples needed by the State: bureaucrats to run it and merchants to finance it. It was from the assorted pamphlets, studies and treatises of these groups of practitioners that Mercantilism developed. In England and Holland, the bulk of the economic writing was done by merchants drawn from their rising bourgeois communities -- thus the term "Mercantilism". In France and Germany, where the bourgeoisie was smaller, economic arguments were articulated largely by state officials -- thus French Mercantilism is better known as "Colbertisme" (named after Jean-Baptiste Colbert, French minister of finance) and German Mercantilism as "Cameralism" (after the German term for the royal chamber). This difference in background between English-Dutch and French-German Mercantilists did not imply much difference in their economic doctrine. Both groups recognized the intimate, symbiotic relationship between the wealth of merchants and the power of...
Words: 5072 - Pages: 21
...“NAVIGATION ACTS” TERESA HAMMOCK MR. CREWS US HIS 1111 1 DECEMBER 2013 Teresa Hammock Mr. Crews US History 1111 December 1, 2013 “Navigation Acts” The Navigation Acts were a series of acts passed by the English Parliament during the seventeenth century to protect England’s trade an prevent the American colonies from directly trading with foreign countries or other colonies. The Navigation Acts, in English history, was a name given to certain parliamentary legislations, more properly called the British Acts of Trade. The acts were an outgrowth of mercantilism and followed principles by Tudor and early Stuart trade regulations. Mercantilism was an economic system of the major trading nations during the 16th, 17th, and 18th centuries, based on the premise that national wealth and power were the best served by increasing exports and collecting precious metals in return. Mercantilist nations were impressed by the fact that the precious metals, especially gold, were in universal demand as the ready means of obtaining other commodities. The tended to identify money with wealth. As the best means of acquiring bullion, foreign trade was favored above domestic trade, and manufacturing or processing, which provided the goods for foreign trade. State actions were the essential feature of the mercantile system, which was used to accomplish its purpose. Under the mercantilist policy a nation sought to sell more than it bought so as to accumulate bullion. There was a rise in Dutch...
Words: 915 - Pages: 4
..._____ 1. _____ 2. _____ 3. _____ 4. _____ 5. _____ 6. _____ 7. The British government usually left American colonists to make their own laws pertaining to local matters. American colonial trade was severely crippled by British trade laws. The European Enlightenment had little influence on the thought of American colonists. Because they were part of the British empire, colonists were constantly involved in England’s imperial wars with France and Spain. Parliament taxed the American colonists as a way to express its authority over them, not because it needed. the money. Colonists protested the Sugar Act and Stamp Act as violations of their rights as Americans. Colonists protested the Tea Act because it threatened to raise the price of tea. _____ 2. _____ 3. _____ 4. _____ 5. _____ 6. _____ 7. LEARNING OBJECTIVES After reading Chapter 3 you should be able to: 1. 2. Define the basic assumptions of the British colonial system and describe its operation. Assess the impact of the Great Awakening and Enlightenment on the spiritual and intellectual life of the colonies. 42 3. 4. 5. Describe the relationship between the French and Indian War and the coming of the American Revolution. Trace the course of key events...
Words: 4419 - Pages: 18
...and it was slavery that caused racism, not the other way round. – The economic conditions that caused slavery had to do with colonisation. Britain, France, Spain and Portugal (countries that had been at war with each-other on and off for centuries) were in a race to take over territory in the Americas – not only because they wanted the wealth that the new territories would bring, but also because if they didn’t take over a particular territory their enemies would get it instead. – Some of the European powers attempted to divide up the Americas between them through negotiated treaties, but this didn’t work. The treaties were ignored and colonisation was a free-for-all; if you could occupy a territory, set up a colony, and defend it against your enemies, then that territory was yours. – In the early days of colonisation black slaves worked alongside enslaved Native Americans, Chinese coolies, and white indentured labourers. The black slaves were not particularly looked down on more than any of these other unfree labourers; if anything it was the Irish who were particularly despised. – The British knew that slavery was wrong, but they thought it was justified by the greater good of building up the British Empire. They believed that they were spreading civilization and Christianity around the world. They also believed in mercantilism, an economic doctrine which held that increased economic activity would bring a better life for all. – Economic development of the colonies...
Words: 422 - Pages: 2
...Assignment on Mercantilism and Physiocracy PACourse Code: PA-511 Course Title: Public Administration Theories and Problems Submitted To: Md. Mashiur Rahman Assistant Professor Department of Public Administration Comilla University Submitted By: Md. Nazmul Haq Student of MSS Session: 2010-11 Class ID: 005 Department of Public Administration Comilla University Date of Submission: 5th February, 2013 Department of Public Administration Faculty of Social Science Comilla University Mercantilism and Physiocracy Acknowledgement In the beginning, I exert my gratitude towards Almighty Allah that I have done this great job. Then thanks to my honorable course teacher Md Mashiur Rahman that he has made the opportunity for me to do a work on such intellectual course contents. I think, in the way of accomplishing this assignment I have earned a lot of knowledge about Mercantilism and physiocracy and it is great achievement for me for sure. This assignment also has taught me about the historical knowledge of economic nature of different states in middle age.. Finally I want to get rid of my mistakes that age may be occurred in preparing this assignment such as spelling or occurred printing mistakes with the merciful mind of my course teacher Md. Mashiur Rahman.. Rahman Md. Nazmul Haq Class Roll-005 2|Page Mercantilism and Physiocracy Table of Contents Topics 1. Introduction 2. Mercantilism 2.1 Factors that Gave Rise to Mercantilism 2.2 Representative Mercantilists...
Words: 7595 - Pages: 31
...The colonial Americans were not different from their European ancestors in terms of predicting the future of their nation and the culture that they possess. The doctrine was actually constructed for the protection of the American interests. Democracy is only powerful and potent when backed up with great power. The main ideas of the Monroe Doctrine were: separate scopes of influence for the Americas and Europe, non-colonization, and non-intervention were designed to indicate a clear break between the Americas and the overbearing monarchs of Europe. Monroe's administration cautioned the imperial European powers against interfering in the affairs of the newly independent Latin American states or potential United States territories. While Americans generally objected to European colonies in the Americas, they also desired to increase United States influence and trading ties throughout the region to their south. European mercantilism posed the greatest difficulty to economic expansion. In particular, Americans feared that Spain and France might reassert colonialism over the Latin American peoples who had just deposed European rule. Signs that Russia was expanding its presence southward from Alaska toward the Oregon Territory were also...
Words: 779 - Pages: 4
...case. 14. What were the facts of the Zenger case? Why so important? Zenger wrote things critical of the royal governor, which was illegal at the time. However, he never lied, and only wrote facts. His lawyer, Andrew Hamilton, defended him excellently and Zenger won, setting a precedent for the future. 15. How were colonial governments similar? Different? Some colonies had (8) royal governors(GA, SC, NC, VA, NJ, NY. MA, NH), some (3) proprietary (MD, PA, DE), and some (2) elected their governors (RI and CT). Almost all had a 2-house legislature though. Most legislatures could set the taxes (taxation WITH representation). However, many people were far from their centers of government, since they were usually on the coast. 16. How did France finally find success in their New World ventures? They colonized Canada, and founded Quebec. They used the fur trade to prosper, trading guns for furs with the local Indians. 17. Where did the French settle? Describe how/where French trappers went as well as Catholic missionaries and their...
Words: 2613 - Pages: 11
...Great Britain’s Dependence on the Colonies During the late 18th century, many would argue the British colonies’ eagerness to fight for independence would be disastrous politically, economically, and militarily; however, it was the most convenient time for their independence to occur. While the colonies had ties with Great Britain, they were slowly breaking and had the right tools to succeed as their own nation. The colonies had three advantages to be a successful nation. First, their experience being under monarchy rule allowed them to not follow into the same steps and find another form of government. Second, they had strong ties with other empires that allowed them to trade without high tariffs. Third, growth in the colonies was higher than Great Britain’s and had enough people to fight against the British Redcoats. America began as a...
Words: 1090 - Pages: 5
...tightly knit group of people possessing bonds of language, religion, ethnicity, and/or other shared cultural attributes. Theoretically, a nation-state is a recognized country possessing formal sovereignty and occupied by a people who see themselves as a single, united nation. In only a handful of countries do state territories largely coincide with the distribution of people who feel they are part of one nation. Iceland, Portugal, Denmark, and Poland are often cited as classic European nation-states. These are exceptional cases, and are even more uncommon outside Europe – Japan and Uruguay are good examples. significant events in this process. The Normans destroyed the Anglo-Saxon nobility; created a whole new political order, and achieved great national strength under William the Conqueror. The Norman victory linked England more closely with...
Words: 2992 - Pages: 12
... Today, military might is paramount in the expansion of globalization. It may seem cynical to those raised in American high schools and higher education institutions to say that “the hidden hand of the market will never work without a hidden fist.”[4] And yet, truly “McDonald’s cannot flourish without McDonnell Douglas, the designer of the F-15. And the hidden fist that keeps the world safe for Silicon Valley’s technologies is called the United States Army, Air Force, Navy, and Marine Corps.”[5] Historically, this military protection of commercial interests has great precedence. As far back as the ancient city-states of Venice and Genoa, powerful navies were the basis of wealth.[6] In the seventeenth and eighteenth centuries, the Qing Dynasty of China pursued imperialist expansion, and conquered no less than four independent nations.[7] British Imperialism In the modern day, Europe, particularly Britain, dominated the international stage before the United States became a formidable military might. As early as 1614, the Dutchman Jan Peieterzoon Coen wrote to his directors at the East India Company, “Trade in India must be conducted and maintained under the protection and favour of your weapons, and the weapons must be supplied from the...
Words: 2997 - Pages: 12
