Conclusion

 

It can be started with an introduction to mercantilism, understanding its historical context and significance in shaping early modern economies.

In the first blog post, it was discussed how the accumulation of wealth and power was central to mercantilist policies. Nations aimed to build strong reserves of gold and silver to assert dominance. The concept of a favorable balance of trade played a pivotal role. Mercantilists advocated for exporting more than importing, leading to a surplus in precious metals.

 Under next post recognized the societal, political, and economic conditions that paved the way for mercantilism's emergence. Mercantilism had notable proponents, such as Jean-Baptiste Colbert and Thomas Mun. It was examined the contributions of these figures to the development of mercantilist ideas.  the key assumptions were discussed like the fixed wealth theory and the idea that exports are superior to imports, which underpinned mercantilist thought.

Mercantilism exhibited distinctive characteristics, including protectionism, state intervention, and the pursuit of a trade surplus. These elements shaped economic policies. However, it was recognized that mercantilism had limitations, such as its misunderstanding of economics, the negative impact on colonies, and its role in fostering international conflicts.

After studying mercantilism in depth, it's critical to understand that, although being superseded by more contemporary economic theories for a considerable amount of time, its influence can still be seen in the world economy. The pursuit of favorable trade balances and elements of protectionism are still relevant in discussions of modern economic policy. Furthermore, knowing the background of mercantilism helps to better understand how economic theory has developed and how complex global trade is. It was based on lessons learned from the limitations of mercantilism in its understanding of wealth creation.

In present's interconnected world, the study of mercantilism provides a valuable perspective on how economic philosophies have evolved and continue to influence the global economy. It encourages us to critically examine and adapt economic policies to face the challenges of the 21st century.

Thank you.

Written by; Visal and Lakshan

Reference links for each section are included in the respective blog page.

History of Economic Thought