Differences And Comparison Of Mercantalists And Physiocrats

So first off, let's talk about Mercantilism. What is bad about it you may ask? Well lets see from a coloniest point of view. So the mother country gets rich, as the colonies do not. The colonists must sell basically all of their raw materials to the mother country for whatever price the Mother country decides (a cheap price). They must buy manufactured goods from the Mother country (at a high prices) so do you see what I mean.

14. Give a good working definition of the practice of “mercantilism”. Mercantilism is economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances,

In the period between the mid-sixteenth century to the early eighteenth century, the global flow of silver had impacted the regions of the world through its value and perception in trade and society. The utilization and production of silver caused many areas to change into societies that focused on commerce and the abundance of goods. Similar to the social effects silver trade made, it had also made many positive economic impacts and changes resulting in the growth of world commerce and wealth, while also making negative economic impacts because of its prominence in the world.

One of these ideals was mercantilism, which was

Key Terms and People mercantilism Mercantilism is a theory that states that a country grows to be strong and important through money that comes from a favorable balance of trade, meaning that a country must export more goods than it imports. Mercantilism kept England powerful, as the colonies provided raw goods that were used to make ships for the navy. Also, the raw goods were used to make products that were sold to other countries. England also had no cause to buy certain products from other countries. It was able to export more products than it imported, keeping the county wealthy and powerful.

During the time of the sixteenth to eighteenth centuries, there was what some consider to be the start of a global economy. During this time there was one main resource that began to factor into multiple societies and economies. This resource was silver and it contributed greatly to the global trade and societies of Europe, Spain and Britain, and China. Silver drastically influenced the fluctuation, rise and fall, of global trade in both Spain and China between the sixteenth and eighteenth centuries.

Question 1 When the Queen Anne’s War ended in 1713, the impact on the British Colonies was very strong. The lands of Hudson Bay, Acadia, and Newfoundland were ceded to the Britain and due to the cession of France the British faced less economic damages as compared to French and Indians. The changes in the social and economic orders were also noticeable which were due to the distributed land. Moreover, there were other lands ceded by Spain to Great Britain such as Gibraltar and Minorca and also the contract of slave trading named Asiento was also given to Britain.

The purpose of the mercantilists were not the same as those of modern economists. Mercantilists were concerned with increasing the power of their own respective nations relative to that of other nations. Their goal was not the allocation of scarce resources in a way that would maximize the standard of living of the people at large. (p. 599)

The flow of silver created an obsession for luxury goods as well as greed. In document 1,

Mercantilism is the focus of draining other countries for its resources and exporting more than you import while gaining as much wealth that is possible by taking the assets from their colonies. So Great Britain believed the more money they had the more power they could achieve. Great Britain used the ideology of mercantilism on the colonies and they were used to export raw materials, such as wood, crops, and furs. Great Britain were able to make goods out of the raw materials that the colonies had exported, once Great Britain was done making the finished goods they would sell it back to the colonies and other countries. Many merchants from Europe gained charters which is a license to do business in the American colonies, this caused an enormous growth in population and merchants became very wealthy. The effect mercantilism had on the natives was not good, because many of the remaining natives became slaves. However the Indians kept dying from the diseases that Europeans brought over, which they were not immune to, and they also would escape because they knew the land very well, so the Europeans needed a new labor group to gather the raw materials and harvest crops for them. The work force the British were looking for had to be cheap, because the merchants wanted to make as much as money as possible, this led to the growth of the African slave

Between the mid-sixteenth century to the early eighteenth century, the flow of silver was able to give a whole new meaning towards the structures in many societies socially. The global flow of silver also created a huge change in the basis of the economy in the Asian and European countries. The flow of silver changed the customary life in Ming China, it shaped the economies in all the regions that were involved, and the flow of silver ruined the currency and Spain’s economy. The increased flow of silver during the mid-sixteenth century to the early eighteenth century caused both social and economic effects in all regions that connected with trade by increasing the integration of Europeans in the globalization of world trade and creating greater economic opportunities but also growing social divisions with China.

Starting in 1500, a new world capitalist system was emerging in Europe. It was a start of a new age, an age of discovery. Spain was looking for the Northwest Passage, a route linking Europe to Asia through North America by sea. Every country was profit and trade driven and along with this new age discovery was a new capitalist system called Mercantilism, which is a system based upon a state to advance national business interests abroad and is increased

Even through the most of viewpoints of Liberalism and Mercantilism are different, these two ideologies of political economy have the value of existence respectively and are worth to research. In addition, Liberalism and Mercantilism have their own advantage and disadvantage. When begin to research them, people should have a critique view to accept their viewpoints. In summary, Liberalism and

Mercantilism Mercantilism is the economic theory that a nation's prosperity depends on its supply of gold and silver; that the total volume of trade is unchangeable. This theory suggests that the government should play an active role in the economy by encouraging exports and discouraging imports, especially through the use of tariffs. Spain and England used the mercantile system to benefit the mother countries. The mercantile system had special regulations, which usually extracted some sort of reaction from the colonies. If necessary, the policies would be changed to better suit the mother country.

Mercantilism was a sixteenth-century economic philosophy that maintained that a country's wealth was measured by its holdings of gold and silver (Mahoney, Trigg, Griffin, & Pustay, 1998). This recquired the countries to maximise the difference between its exports and imports by promoting exports and discouraging imports. The logic was transparent to sixteenth-century policy makers-if foreigners buy more goods from you than you buy from them, then the foreigners have to pay you the difference in gold and silver, enabling you to amass more treasure. With the treasure acquired the realm could build greater armies and navies and hence expand the nation’s global influence.