Mercantilism

Mercantilism

Length: 479 words (1.4 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Mercantilism

Mercantilism was a method of trade used by 16th, 17th, and 18th century Monarchies to increase exports and the amount of imports of precious metals coming in. In a country under mercantilist persuasion, a country would do all it could to bring in money. Treaties were made with countries so that one trading country would have exclusive trading privileges in another country. A country would control the production of items, (how much and how many) and then 'encouraged' these items be traded to other countries. With goal obviously being profit, these countries sought to sell more than they bought. The raw materials needed for products were mostly gotten from the inside instead of buying from outside. Frequently, manufacturing and production would go before practices such as farming or the like.
Countries that had colonies across oceans or in different places in the continent would by all means use these connections to their advantage and take every dime and quarter they could. It became a practice of many parent countries to frequently call in their profits to enhance the banks at home.
One could compare the Mercantile System to Communism or a Socialist economy. Mercantilism was not as extreme as communism, in that the concept was not to control a person's life and being, but rather, focused on the financial wellbeing and wealth. It would seem more akin to Socialism, even though the people own the means of production instead of individuals for the benefit of the population. The king retained the power to grand monopolies on trade or export to certain individuals, therefor strengthening his own power over people. Many of these wealth seeking countries also sought other things: namely, more land, fertile land, so as to extend their trading farther and farther into new worlds, such as the Americas.
.
The Mercantile practices also had effect on population growth and decline. Many people who lived in outward areas of cities soon saw the benefits of living in the city, such as jobs in industry where money was relatively steady and not depending whether it rains in the next 2 weeks. The farmers put down the plows and instead took up a job in town. Many people also moved into the cities just because of conditions and safety. Those who lived in mountains would move down into the plains, or into cities, sometimes only seasonally to work.

How to Cite this Page

MLA Citation:
"Mercantilism." 123HelpMe.com. 19 Aug 2018
    <https://www.123helpme.com/view.asp?id=133159>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Japan's Mercantilism Policies Essay

- Japan’s policies of mercantilism have impeded its economic success for decades. Despite the countries numerous economic successes around the world, Japan has not reached its full economic potential. In the media, this argument has been framed with the classic American conservative and neoliberal bias-that Japan’s lack of free trade has led to this sudden urgency for them to diverge from their protectionist policies to more neoliberal policies in the future, that their current economic situation is not sustainable....   [tags: Economics]

Research Papers
983 words (2.8 pages)

Essay on Hudson Bay Company in Canada: From Mercantilism to Corporatism

- Introduction Canadian economic history is often taken as an obscure and comprehensive subject. From the time Canada was a colony of Great Britain, to the official proclamation of the confederation on July 1st 1867, Canada adopted many economic ideologies that established Canada as developed nation. Mercantilism is one of many of the earliest theories that the Canadian economic system adapted from the Great Britain. According to Dyer, “Mercantilist system relied on trade with the colonies to supply the mother country with raw materials, where the end goal was a trade surplus and accumulate a treasury that was used to fight wars with one another.” As history progressed, Canada was shaping up...   [tags: Trade, Management]

Research Papers
1668 words (4.8 pages)

Mercantilism Essay

- Mercantilism Mercantilism was a method of trade used by 16th, 17th, and 18th century Monarchies to increase exports and the amount of imports of precious metals coming in. In a country under mercantilist persuasion, a country would do all it could to bring in money. Treaties were made with countries so that one trading country would have exclusive trading privileges in another country. A country would control the production of items, (how much and how many) and then 'encouraged' these items be traded to other countries....   [tags: Papers]

Free Essays
479 words (1.4 pages)

Mercantilism Essay

- The year 1607 brought England into the "New World" with its first permanent settlement at Jamestown, and the following years would bring more American colonies to the British Empire. When sending people into the new land, the English planned to use a mercantilist policy and fully use the colonies for their resources. The colonist's creation of the proverb "Mother countries exist for the benefit of their colonies" is sufficient because England's original intentions of mercantilism soon disappeared after their entrance into this new world....   [tags: essays research papers]

Research Papers
969 words (2.8 pages)

Mercantilism Essay

- 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....   [tags: Economics]

Research Papers
1143 words (3.3 pages)

Mercantilism Essay

- Mercantilism Economics in the seventeenth and eighteenth century were dominated by the idea of mercantilism. Mercantilism depended on the cooperation between colony and mother country in the shipping and production of raw materials. Domestic industry increased employment, expanded commercial activity within the country and decreased France's dependence on foreign trade. The success of a Mercantile system relied on the government, participating merchants, even nobility and the working class, all had effects on the success of the French economy. France's King Louis XIV played a hugely important role in the success of mercantilism....   [tags: Papers]

Research Papers
452 words (1.3 pages)

Mercantilism Essay

- Mercantilism is an economic theory where a nation's strength comes from building up gold supplies and expanding its trade. Britain formed the American colonies so that they could increase their gold stores. They wanted raw supplies to make into products to sell and make money. They wanted America to pay taxes so that Britain could make money. America used the theory in that they thought they ought to, in order to be strong expand their trade beyond Britain. Countries like Belgium, and France wanted to also increase their trade, and expand it to trading with America....   [tags: essays research papers]

Research Papers
1876 words (5.4 pages)

17th Century English Mercantilism Essay

- Mercantilism Essay England in the 17th century adopted the policy of mercantilism, exercising control over the trade of the colonies, thus greatly affecting their political and economical development. Mercantilism was the policy in Europe throughout the 1500's to the 1700's where the government of the mother country controlled the industry and trade of other, weaker settlements with the idea that national strength and economic security comes from exporting more than what is imported. Possession of colonies provided the countries with sources of raw materials and markets for their manufactured goods....   [tags: European History]

Research Papers
938 words (2.7 pages)

French Mercantilism Essay examples

- French Mercantilism Mercantilism, the collection of governmental policies that regulated economic- mainly commercial - activities, by and for the state, that spread throughout Europe, especially in France, during the seventeenth and eighteenth centuries. This theory held that a nation's international power was based upon it's wealth, specifically it's gold and silver supply. The mercantilist theory, also known as Colbertism or Bullionism, that swept though France had a major impact upon its changing domestic and foreign policies throughout the seventeenth and early eighteenth centuries, and was geared toward strengthening the economic vitality of the state at the expen...   [tags: Papers]

Research Papers
895 words (2.6 pages)

British Mercantilism Essay

- Economic ideas and systems come and go. Many systems have failed and many have succeeded. The British system of mercantilism was actually quite a good system for England. They raked in profits from their colonies. The only problem was that they did not give enough economic freedom to their colonies. At almost every turn, the British tried to restrict what their colonies could do and whom they could trade with. In hindsight, I believe that the British may have been a bit more lenient on their restrictions because the constant prohibitions eventually lead to revolution… England did not directly control its colonies....   [tags: essays research papers]

Research Papers
2907 words (8.3 pages)

They also moved sometimes country to country, such as people living in France going to Spain to work, and the like.
The fear of every mercantilist country was, as one index put it, "fear of goods" or fear of deficits in trade. As it is today, the fear was that one would pay out their profits of exporting to import what they need, therefor losing the wealth they so desperately wanted. They tried to get gold bullion wherever and however they could. Countries became wealthier, and spent money on things such as enlargement of cities, estates for officials, and town areas, and day to day government. This money also went to fund the many wars that were occurring at the time. The money also went into the creation of large shipping industries and a larger population trained in industry.
This however was also the downfall, since with the growth of wealth also came inflation. Inflation caused the price of everything from food, to beverages, housing, and raw materials to go up. The towns could no longer support such huge industries and the exporting, and therefore the system went belly up.
The idea behind Mercantilism was to control the production of goods by the government so long as it benefits the people. Did it benefit the people? For a while yes, but ultimately drove the people into the ground.




Bibliography:

1998, world book
1998, encarta

Return to 123HelpMe.com