There are various factors that helped for the emergence of mercantilism such as financial factors, economic factors, religion factors, cultural factors, and social factors. Those factors can be described as follows.
1.Financial Factors:
State Finances: Mercantilism emerged at a time when European monarchies needed funds for military campaigns and state-building. They saw wealth as essential for maintaining their power and sought ways to increase their treasuries.
Bullionism: A core concept in mercantilism was the accumulation of precious metals, particularly gold and silver. Governments aimed to have a favorable balance of trade to ensure a net inflow of bullion into their countries.
2.Economic Factors:
Colonialism: European powers established colonies in the Americas, Asia, and Africa, which provided valuable resources, including raw materials and new markets. Mercantilist policies were designed to exploit and control these colonial possessions.
Protectionism: Governments implemented protectionist measures such as tariffs and subsidies to support domestic industries, maintain a trade surplus, and limit reliance on foreign goods.
3.Religious Factors:
Religious Conflict: The religious conflicts of the Reformation and Counter-Reformation period, particularly in Europe, created a backdrop for mercantilism. Governments often supported or opposed trade with specific nations based on their religious affiliations.
Religious Missions: Religious groups and individuals played a role in the expansion of trade through missionary activities and the establishment of trading posts in foreign lands.
4.Cultural Factors:
Mercantile Values: There was a cultural shift towards valuing commerce and trade as prestigious activities. Merchants and traders gained social status and recognition, and this influenced the economic climate.
Innovation and Technology: Advances in navigation, shipbuilding, and exploration facilitated long-distance trade and allowed for the exploration of new markets.
5.Social Factors:
Population Growth: Increasing populations in Europe created a demand for more goods, both domestically and through international trade. This fueled economic expansion and encouraged trade.
Social Mobility: Mercantilism offered opportunities for social mobility, allowing individuals and families to improve their social and economic standing through entrepreneurship and trade.
Written by: Rashmitha and Dilshan
https://www.britannica.com/question/What-were-the-effects-of-mercantilism
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