Mercantilism was an economic theory that dominated Western European economic policy from the 16th to the 18th century. It held that a nation's wealth came from its supply of gold and silver and advocated running trade surpluses, economic self-sufficiency, and state regulation of the economy through tariffs, subsidies, and colonies to maximize exports and minimize imports. Colonies were seen as sources of raw materials and captive markets for the mother country's manufactured goods.
Mercantilism was an economic theory that dominated Western European economic policy from the 16th to the 18th century. It held that a nation's wealth came from its supply of gold and silver and advocated running trade surpluses, economic self-sufficiency, and state regulation of the economy through tariffs, subsidies, and colonies to maximize exports and minimize imports. Colonies were seen as sources of raw materials and captive markets for the mother country's manufactured goods.
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Mercantilism was an economic theory that dominated Western European economic policy from the 16th to the 18th century. It held that a nation's wealth came from its supply of gold and silver and advocated running trade surpluses, economic self-sufficiency, and state regulation of the economy through tariffs, subsidies, and colonies to maximize exports and minimize imports. Colonies were seen as sources of raw materials and captive markets for the mother country's manufactured goods.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
thought to be the supply of money and precious metals held by its government and people. Characteristics of Mercantilism
1. Dictated a “favorable balance of trade.”
– Export more than you import [a trade surplus]. – High tariffs on imported manufactured good. – Low tariffs on imported raw materials.
2. Each nation must try to achieve economic
self-sufficiency. – Those founding new industries should be rewarded by the state. Characteristics of Mercantilism 3. Thriving agriculture should be carefully encouraged. – Less of need to import foods. – Prosperous farmers could provide a base for taxation. 4. Sea power was necessary to control foreign markets.
5. Impose internal taxes of all kinds.
Characteristics of Mercantilism Manufactured goods
Mother Country Colony Raw materials Cheap labor
6. Colonies would provide captive markets for
manufactured goods & sources of raw materials. Characteristics of Mercantilism 7. Trade is a “zero-sum” game. – A nation can gain in international trade only at the expense of other nations.
8. A large population was needed to provide a
domestic labor force to people the colonies.
9. State action was needed to regulate and
enforce all of these economic policies. – State-sponsored trade monopolies.