...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...
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...Mercantilism and the revolution. Mercantilism kind of reminds me of commercialism the way that it is the idea that all the colonies existed for the benefit of a mother nation and that the were compared to tenants who “paid rent” by providing things such as food and other materials for export to britain and this had a major impact on how the early english colonists felt about England and the king. so basicly like i said befor, an older version of commercialism. Colonists went to america because the people had heard that there was precious metals and gold in america that was free for the taking and that it was not guarded so the english sent of ships to go create colonies and bring back...
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...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...
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...Slide 2 Mercantilism is an economic concept and economic policies that appeared in the XVI century, in time of great geographical discoveries, the development of merchant capital. The authors of such economic outlook, published their treatises in England, France, Holland - in countries emerging from the end of the XV century industrial heyday. Slide 3 But mercatilism is not just politics. The term is used in two senses: as a policy of protectionism (XVI-XVII cc.), The policy of accumulation of gold and silver - the basis of the wealth of the nation and the state and as a theoretical justification for this policy - a system of beliefs, marked the milestone in the history of economic doctrines. The mercantilists were looking for a source not just of wealth, but wealth in the specific form that suits the period of primitive accumulation. They reflect the interests of large commercial capital, for which money is not a treasure, but the form of capital. Money for them is an engine of trade and manufactory production. The source of the flow of wealth is foreign trade. Slide 4 To increase wealth, you need to follow these guidelines: 1) to achieve a positive balance of trade, ie " to sell to foreigners every year more than buy from them"; 2) do not save money as a treasure and use them in trading operations and expand trade, as export of money is mean of increasing national wealth; 3) be economical in expenditure, avoid waste; 4) contribute to the development of industry...
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...How Mercantilist Thought Is Responsible For the Exploitation of Slaves Amid Teghizadeh WHO 2001 Prof. Saad Abi. Hamad It is evident that the abuse of slaves in the mercantilist era was due to the naked greed of the Europeans. Mercantilism is an economic theory in which states that a nation’s strength and power comes from amassing bullion while expanding its trade. From a 16th century perspective, the idea that the prosperity of a nation depended on its supply of capital was quite logical. Since bullion was thought to be limited, acquiring large quantities of such were necessary not only because of its intrinsic value, but as a way to deny other political powers a slice of the cake. Mercantilists understood that wealth and monetary assets were one and the same, and such the progress of their nation depended on controlling these assets. This required the nation states to maximize the difference between exports and imports by stimulating imports while dissuading exports, under the logic that if foreigners bought more goods than you bought from them, then you would be able to amass a larger quantity of bullion and the balance of trade would be favorable to that nation. The policies that facilitated this model of economic growth were supported by the nation states, who benefitted from the assets provided by taxes and levies to build large military forces, which would in turn protect the business interests of the mercantile classes. The largest and most profitable commodity...
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...Matthew Jensen Mr. Vitale British Lit 23 March 2015 British Control of the Bullion Mercantilism started around three hundred years ago for the wealth of the mother nation. The British government wanted colonies because colonies would increase their wealth and power. The thought was that no great nation would be able to exist and survive without colonies. In the beginning of the 17th century, mercantilism was becoming a popular economic theory in the British Empire. However, this is not the first time in history that mercantilism shows up. This economic policy appeared in France as a state intervention, which would protect the domestic merchants and manufactures. The origin of this economic policy comes from a man named Adam Smith....
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...Question: Explain the relationship between mercantilism, the Navigation Laws, and British efforts to create an administrative structure for their empire after 1696. A close relationship existed between mercantilism and the Navigation laws. The British authorities embraced a theory called mercantilism which was the idea that the wealth of a nation depends on its possession of precious metals and that the government of a nation needs to take full advantage of the foreign trade surplus, and promote national commercial interests, the establishment of the colonies, so on and so forth. Mercantilists believed that wealth was power and that a country’s economic wealth could be measured by the amount of gold or silver in its treasury. In order for maximum accumulation of gold or silver, a country needed to export more than it imported. The London government discouraged buying goods from other countries; Americans were expected to provide products needed in the mother country such as tobacco, sugar. The control is evident. Britain didn’t want the Americans to even think about self-government. Parliament passed laws to control the mercantilist system. They were called the Navigation laws. They were a series of English laws that required the American colonies to trade primarily with England; set duties on some goods. I imagine this upset a few colonists. Adam Smith states, “To prohibit a great people, however, from making all that they can of every part of their own produce, or from...
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...Mercantilism was a system of government that controlled the economic affairs of the state to fulfill national wealth. The British Colonists coped with the economic restraints placed upon the by this imperial economic theory by asking the for government assistance. The colonists became extremely dependent on the empire. Trade was only allowed within their empire, in fear that they would make the other empires richer. This became a competition in world trade. The government were so wrapped up in this competition that they didn’t also give the British colonists what they needed or asked for. New England, Middle Colonies, Chesapeake and the Southern colonies all participated in the Atlantic World trade routes. New England was close to the ocean...
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...Explain Mercantilism. Mercantilism refers to an economic system, which was used in trade between the 16th and 18th century. The Mercantilism system was based off the Mercantilist theory and theorists believed that the size or amount of wealth in the world is static. In this case, European countries took significant strides to ensure that each nation garnered as much wealth as it could to increase the national wealth. Some of the ways they used to achieve this include imposing government regulation in countries where commercial interests had been established. More so, the theorists believed that national strength could be increased by minimizing the imports with high tariffs and maximizing the exports. 2. Describe the World Trade Organization...
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...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...
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...“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...
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...GBM 381 Week 1 Quiz To Buy This material Click below link http://www.uoptutors.com/GBM-381/GBM-381-Week-1-Quiz 1. _____________ explains how mutually beneficial trade can take place even when one nation is less efficient than another nation in the production of all commodities. 1. Mercantilism 2. The law of comparative advantage 3. The labor theory of value 4. The law of absolute advantage 2. The ability of one nation to produce a commodity using fewer resources than another nation is: 1. absolute advantage 2. comparative advantage 3. mercantilism 4. specialization 3. According to the following table, the US can gain from trade with the UK by getting how much cloth for 9 bushels of wheat? | U.S. | U.K. | Wheat (bushels/hr) | 9 | 3 | Cloth (yards/hr) | 5 | 4 | 1. Only less than 12 yards of cloth 2. Only greater than 9 yards of cloth 3. Anything less than 5 yards of cloth 4. Anything greater than 5 yards of cloth 4. In a two-nation world, if Nation A’s export prices increase relative to their import prices, which of the following will occur? 1. Terms of trade improve for both nations 2. Terms of trade worsen for Nation A and improve for their trade partner 3. Terms of trade improve for Nation A and worsen for their trade partner 4. Terms of trade worsen for both nations 5. Which of the following would least likely apply to the product cycle theory? 1. Digital cameras 2....
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...modern theories that emerged after the Second World War as it views business in a micro perspective from the angle of a firm. Despite the different perspectives of firm-based theories and country-based theories, they are interlinked and complement each other. The firm-based theories were developed from classic country-based theories and supported with empirical research. Country-based theories are international business theories that argue on the evolvement of business since the 16th century. The theories are classical theories that derived from an economic perspective. There are 4 theories involved in country-based theories. They are Mercantilism Theory, Absolute Advantage Theory, Comparative Advantage Theory and Heckscher-Ohlin Theory. Firm-based theories attempt to explain business phenomena related to international trade. Mercantilism theory was the first theory of international business that emerged in England in the mid of 16th century. The principal affirmation of the theory was its gold and silver were the mainstays of national wealth and essential to dynamic business. It was a political economy system that aimed to generate wealth by limiting imports and encouraging exports. Under this theory, the economic growth of a country was managed through international business. The classical economist David Hume mentioned a natural inconsistency in the mercantilist doctrine in 1752. According to him, if England had a balance-of-trade surplus with France (if it exported more...
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...or entities trade because they believe that they benefit from the exchange. They may need or want the goods or services. While at the surface, this many sound very simple, there is a great deal of theory, policy, and business strategy that constitutes international trade. MERCHANTALISM Developed in the sixteenth century, mercantilism was one of the earliest efforts to develop an economic theory. This theory stated that a country’s wealth was determined by the amount of its gold and silver holdings. In it’s simplest sense, mercantilists believed that a country should increase its holdings of gold and silver by promoting exports and discouraging imports. In other words, if people in other countries buy more from you (exports) than they sell to you (imports), then they have to pay you the difference in gold and silver. The objective of each country was to have a trade surplus, or a situation where the value of exports are greater than the value of imports, and to avoid a trade deficit, or a situation where the value of imports is greater than the value of exports. A closer look at world history from the 1500s to the late 1800s helps explain why mercantilism flourished. The 1500s marked the rise of new nation-states, whose rulers wanted to strengthen their nations by building larger armies and national institutions. By increasing exports and trade, these rulers were able to amass more gold and wealth for their countries. One way that many of these new nations promoted exports was...
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...Giovanni Botero •Giovanni Botero was born around 1544, nobody know exactly the time he was born. And he died in 1617. He was an Italian thinker, priest, poet and diplomat. •Botero was sent to the Jesuit college in Palermo at age of 15 and had chances to teach philosophy and rhetoric in many place in Europe such as France, Italia, Spanish during 1559-1580) à The Jesuit educational program had on Botero in both the political and economic spheres. •Botero rounded out the eighties in Rome in the employ of Federico Borromeo as a personal assistant and secretary à This was Botero's most productive stage, seeing the completion of his three most important works: •The Greatness of Cities (1588), The Reason of State (1589), and Universal Relations (1591) WORK AND THOUGH The most important work of Botero is The reason of state. By this work, he showed the main ideas about the mercatilism in 17th century. •Jean Bodin's “Six Books of the Republic” was an important influence on Botero's writing of the Reason of State •But, Botero's overall conception of political economy is more 'liberal' than that of Bodin. • The primary end of mercantilist policies was to produce for one's state a favourable balance of trade in relation to other states, thereby giving them power over those states. - In argument about the participation by kings in the economy of the country, Bodin cautioned kings only against trading with their own subjects; all other economic activity was allowed. - Botero, on...
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