Introduction to Mercantilism

Introduction to Mercantilism

In the annals of economic history, specific theories and ideologies have influenced commerce, policy, and prosperity while shaping the path of nations. One such important idea that has evolved over the centuries in the global environment is mercantilism. The economic theories and practices that would come to characterize the early modern period of exploration, colonization, and fierce international competition were based on mercantilism. It intended to start a trip through the complexities of mercantilism, its roots, fundamental tenants, and long-term effects on the development of the global economy in this blog post.

Mercantilism was more than just an economic doctrine at its foundation. From the 16th to the 18th centuries, it served as a foundational ideology for economic policy. The concept of wealth and acquisition through trade, the gathering of valuable resources, and the expansion of one's authority through exploration and colony is prevalent throughout this time. These goals were given a framework by mercantilism, which also provided several related tactics for boosting economic power.

The idea that a country's wealth was equivalent to its stockpile of precious metals, such as gold and silver, was one of the fundamental pillars of mercantilism. These metals stood for material wealth that could be accumulated through a positive trade balance in the minds of mercantilist philosophers. This notion motivated actions intended to increase exports while reducing imports, which led to a net inflow of gold and silver. Various forms of government intervention, including as tariffs, subsidies, and limitations, were used to promote home industry and stifle foreign competition.

It will be discovered the mercantilist emphasis on self-sufficiency and the accumulation of colonies as sources of raw materials and outlets for manufactured commodities as we delve more into the subtleties of mercantilism. This drive for economic independence stoked tensions between countries competing for control of international trade networks. Throughout the mercantilist period, the formation of powerful commercial organizations, the establishment of colonies, and the expansion of empires were all motivated by the desire to acquire an economic edge and accumulate wealth.

It can be gained a deep understanding of modern economic systems when it is examined the evolution of trade. The legacy of mercantilism lives on in today's global trade dynamics, protectionist policies, and debates about the role of government in economic relationships. From now on, we will study more about mercantilism through this series of blogs.

written by :- Dilshan & Manoj

reference

https://www.tandfonline.com/doi/epdf/10.1080/03585522.1964.10407639?needAccess=true&role=button