3. Mercantilism was a reaction against the economic problems
of earlier times when states were too weak to guide their
economies and when every town or principality levied its own
tariffs on goods passing through its borders.
4. Mercantilism was the theory of trade espoused by the major
European powers from roughly 1500 to 1800. It advocated
that a nation should export more than it imported and
accumulate bullion (especially gold) to make up the
difference. The exportation of finished goods was favored
over extractive industries like farming
5. Mercantilism is the economic doctrine in which government
control of foreign trade is of paramount importance for
ensuring the prosperity and security of the state. In
particular, it demands a positive balance of trade.
Mercantilism dominated Western European economic policy
and discourse from the 16th to late 18th centuries.
Mercantilism was a cause of frequent European wars in that
time and motivated colonial expansion.
6. Mercantilism was the dominant school of thought in Europe
throughout the late Renaissance and early modern
period (from the 15th-18th century). Mercantilism
encouraged the many intra European wars of the period and
arguably fueled European expansion and imperialism both in
Europe and throughout the rest of the world until the 19th
century or early 20th century.
7. The modern age brought the rise of
powerful nation states
(Holland, France, Spain and England)
and was marked by almost constant
warfare. Money (bullion) was needed to
support ever-expanding armies and
navies. Mercantilist concepts
developed from this need.
Underlying this theory was the belief that
wealth was finite. If one nation hoped to
grow richer, it had to do so at the
expense of some other nation.
The development of colonies became
very attractive during this era. Wealth
could be kept by a nation if its colonies
provided raw materials to the mother
country and the mother country could
sell finished goods to the colonies.
8. Reverse-mercantilism is an economic system which strives to
increase corporate wealth and monopoly by subsidizing
some corporate entities while regulating, taxing and
controlling borders (blocking outsourcing and creating tariffs)
for all competitors.
9. We can conclude that mercantilism was a reaction against
the economic problems during 18th century and also was a
doctrine in which government control de security and
prosperity of the state and also the importing and exporting
of the country.
