ANSWER 1:
(a) Mercantilism:
Mercantilism is a countries best interest to maintain a trade surplus (i.e.) export more than imports. It was proposed in 16th century to achieve surplus in balancing the trade and ones country wealth is measured in terms of gold. Here in trade it is viewed as “ZERO SUM GAME” in which one country gains and other loses. From 1950’s India buys nuts from African countries and as per mercantilism theory that is trade between two countries and here it doesn’t explain trade between two countries. Thus India buys from one country and sells to another for at higher rate and the richer company buys process it and sells it to the developed countries like US &UK when their demand increased after 1970’s. India exports only 50 percent due its demand in country but Brazil exports 85 percent to other countries. Thus mercantilism doesn’t explain clearly about cashews.
(b) Absolute Advantage Theory:
Adam Smith states that one country has more advantage when it is more efficient in production of a product than other country. He also states that the country that is specialized in a particular product while have an absolute advantage while doing trade to other countries. From 1920-1970’s India had an absolute advantage of producing the cashews in processing industry in which they had a high demand in all countries and if any other countries want to sell the nuts they need to incur other charges like transports. After 1970’s when machineries came to market countries like Africa and Brazil stopped exporting cashew for processing in India. Thus India loses its advantage to Brazil as they do more exports in which processors have to pay 30-36 percent of what Indian processors pay. India exports only 50 pe...
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... quality. By producing good quality we can demand more prices and it makes more revenue for the country and we can give higher payoff to workers to produce good quality product. Instead of following hand made type we can go for new machineries which will improve the efficiency of producing nuts and we can deliver at faster rate. Already experimentation is going on both the nut and fruit and it can be used for commercial items like jams, candy, syrup, wine, etc. Making agreements with foreign countries to improve trade affairs and also to improve economy of a country. To find out a possible solution the committees like All-India Coordinated Spices and Cashew Nut Improvement Project should find more ways to improve the nuts and also the efficiency. Steps to be taken to avoid surplus cashew nuts. Find new markets in various countries like outlets, franchise, etc.
Encomiendas: An encomienda was a grant of Native American labor given to prominent European men in the Americas by the Spanish king. This grant allowed European men to extract tribute from natives in the form of labor and goods. The value of the grants was dramatically increased with the discovery of gold and silver in the Americas. The significance of this term is that although this system was eventually repartitioned, it initiated the tradition of prominent men controlling vast resources and monopolizing native labor.
Mercantilism -- an economic theory that holds the prosperity of a nation dependable upon its supply of capital, and that the global volume of trade is "unchangeable." Economic assets, or capital, are represented by bullion (gold, silver, and trade value) held by the state, which is best increased through a positive balance of trade with other nations (exports minus imports). Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy, by encouraging exports and discouraging imports, especially through the use of tariffs. The economic policy based upon these ideas is often called the mercantile system.
There are many disadvantages associated with starting their own branch in India. First is that this option is the most expensive. They would have to pay for all the marketing, equipment, building, manufacturing, production, and staffing that they would need to operate. Mercan Systems would not be able to share any costs with another company. The financial investment needed would depend on the number of regions they choose to operate in (two, four, or nationally) and if they use a direct salesforce or dealers, but it would still be significantly higher than any other alternative. Starting another branch in an international market that they do not already have a location in, is a large change and project to take on. It requires an immense amount
When comparing and contrasting the Northern and Southern colonies throughout their development, it is vital to fully understand that each colony differed as a result of their reasons for settlement, geographic setting, and economic establishment; however, the colonies were additionally equivalent with regards to their social perceptions and standards of mercantilism.
Based on England’s salutary neglect toward the colonies, their policy of mercantilism, and the fact that no colonists were represented in Parliament, I would have signed the Declaration of Independence.
Mercantilism during the 16th through 18th century played a major part in the relationship between Britain and the colonists of America. Mercantilism was one of many factors that caused the separation of America and Great Britain. You must first know how mercantilism benefitted both parties in order to understand why the separation took place. Mercantilism is an unfair practice. The main objective of mercantilism was to increase a nation’s wealth by commanding government regulations concerning its commercial interest. Nations that practiced and enforced mercantilism among other countries believed that their strength could be maximized by limiting imports through tariffs and maximizing exports.
Mercantilism and the Navigation Acts: Mercantilism was the theory of trade that stressed out that a nation 's economic strength depended on exporting more than it imported. British mercantilism manifested itself in triangular trade and in laws passed throughout the rise of colonial America; one of the acts was the Navigation Acts, aimed to make England have economic dominance. To improve mercantilism, the Navigation Acts regulated trade in order to benefit England’s economy. The Navigation Acts restricted trade between England and itself, required certain colonial goods to pass through England before export, provided subsidies for the production of certain raw goods in the colonies, and banned colonial competition in large-scale manufacturing.
Economic changes Mercantilism •Europeans grow wealthy at the expense of colonies/Native Americans and Africans •Columbian Exchange •Spread of plants, animals, ideas between Europe, Africa and Americas •Triangular trade •Facilitated mercantilism and Columbian Exchange •Global economy Soical changes Christianity blends with traditional Native American and African beliefs •Voudou in Haiti •Santeria in Cuba •Gods replaced by saints, but some old traditions remain (e.g. bloodletting) Soical changes Social classes in Americas based on race •Peninsulares, creoles, mestizos/mulattoes, Native Americans and Africans •Slave trade •Led to decreased population in Africa •Weakened remaining African civilizations and hurt the potential rise of new ones •Spread
...le for sale on the internet. In the case of Shea butter production, division of labor is a crucial factor. The Shea tree is indigenous to West Africa making myself and other persons that use the product reliant on the African workers to produce it. For any county to be fully self-sufficient, or to not trade with other countries, it would possibly be deprived of such items that can not be grown there. Therefore, specialization is a factor that keeps the trade cycle moving, one country creates a product and is able to trade it with others.
Mercantilism is an economic policy and system that was implemented by many different European colonies during the 16th-18th centuries in order to closely regulate trade in the American colonies. The goal of this was to maximize more domestic exports and halt foreign imports. In order words they wanted to monopolize domestic markets in order to benefit the mother country. This helped to promote a dominant relationship over the colonies, forcing the colonies to provide the mother country with raw materials which would be shipped to the home country and made into manufactured goods before being returned to the colonies to be bought and sold. (Foner, Give Me Liberty, p. 88).
An unmistakable tension fills the air of a small Boston townhouse on a warm summer evening. In every town hall in the American colonies, there are loud grumblings over the recently passed Molasses Act and all its substituents, including the Sugar and Stamp Acts. These acts, descendants of the mercantilist “Navigation Acts” passed by British Parliament in the 1650’s, were put in place to help Britain recover from its devastating losses in the Seven Years’ War. These acts threatened to cripple the already-weak economy of the Colonies and negatively affect the exporting powers of the New England ports, since producers of molasses and rum would have to charge higher prices for products that already had a thin margin of profit and high competition. The colonists, realizing this threat, banded together as the slogan “No Taxation Without Representation” echoed throughout the colonies. The Molasses, Sugar, and Stamp Acts, products of Thomas Mun’s theory of mercantilism, acted as a final straw for the colonies that would signal the start of the American Revolution. More importantly, these acts signaled the beginning of the end of mercantilism, an economic mindset that dominated the economies of Europe’s largest nations for two centuries. Britain’s powerful mercantilist economic policy controlled every facet of British trade until it was ultimately abandoned when restrictive mercantilist trade laws led leaders of the American colonies to declare a need for fair representation, followed by the events of the American Revolution which led to the demise of mercantilism.
The role of mercantilism played a major role in the development of British North America. Mercantilism made it that the colonies would supply raw materials to the mother country, which led to many trade restrictions, this stunted the growth and freedom of colonial business. Britain passed the Navigation Acts, laws that were to make American colonies more dependent on England. Certain goods could only be sold to England, such as sugar and tobacco. For a period of time, Edmund Burke created an idea of Salutary Neglect, which meant that England would leave them alone, and they were able to do rule how they wanted, as long as they remained profitable and abided by English rules, this ended however with the end of the French and Indian war.
Free trade theory, in the international political economy discipline, was encouraged in the tenth century by David Ricado, the British political economist, who created the theory of comparative advantage which demonstrates that every state could benefit from trade liberalization by specializing products and services which they are able to make best even if it may be not better than other states (O’Brien and Williams, 2013). Thus, even low income developing countries will also gain benefits from free trade. Liberals also believes that if states are better off and has strong economy it means that the government will have enough money to improve living standards of its population and other national development projects to eliminate poverty and
Back when the New World was being founded, the idea of mercantilism began to spring up. This concept infuriated many people, even though it was used to try and benefit the nation. England needed a way to rise above their neighboring rivals, and mercantilism seemed to be the answer. Over time, mercantilism began to shape the economic and political relationship between England and its new colonies.
David Ricardo was a leading economist in the 1800s. Ricardo was a leading advocate of free trade. Adam Smith was also an advocate of free trade. Smith was more confident than Ricardo that the ability of a market economy's potential could benefit society. (Carbaugh, 2009). Ricardo felt that a countries government should not meddle in free trade and could hinder free trade instead of help it. Ricardo's theory of comparative advantage has been used by economists for years. The law of comparative advantage states that the citizens of each nation can gain by spending more of their time and resources doing those things in which they have a relative advantage (Carbaugh, 2009, p12). What this means is that one needs to determine whether the production of a goods or service is done more economically either domestically or abroad. Even if one country has the advantage in all situations, both countries can still benefit. The theory states that the less efficient nation should specialize in and e...