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Mercantilism was the principle that

Blair Lewis

in Social studies

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Craig Stewart on October 20, 2018

Mercantilism was the principle that there is a fixed amount of wealth in the world, and that nations establish colonies in order to economically benefit the mother country."Mercantilism" is a term that we get from Scottish philosopher Adam Smith (1723-1790). Smith criticized what he called the "mercantile system" because it restricted trade and thus restricts the economic growth. The mercantile system it is believed that the wealth of the world was a fixed quantity, which is measured mainly in gold and silver accumulated. The system promoted a nation from the sale of their products abroad, but not need of the others, or the imposition of high tariffs if you import nothing. The colonies were created to provide raw materials and resources to the mother country and a market for the mother country's products. The trade was heavily controlled by the government, through the charters granted to certain companies of trade.Adam Smith countered by the promotion of a free market -- the opportunity for all nations to increase their wealth through the exchange of goods freely with each other according to what would become known as the capitalist principles.


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