Mercantilist Policies
Definition
Mercantilism is an economic theory that advocates for a positive balance of trade, where exports exceed imports. It encourages government regulation of the economy to achieve this goal.
Analogy
Think of mercantilism as a game of Monopoly. The aim is to accumulate as much wealth (properties and money) as possible while minimizing what you give away (paying rent). Just like in Monopoly, countries under mercantilist policies aim to export more than they import, accumulating wealth.
Related terms
Protectionism: This is the practice of shielding a country's domestic industries from foreign competition by taxing imports.
Colonialism: This refers to the policy or practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically - often seen in conjunction with mercantilist policies.
Balance of Trade: This term refers to the difference between a country's exports and its imports. A positive balance means that exports exceed imports (a goal of mercantilist policies).
"Mercantilist Policies" appears in:
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Practice Questions (15)
- Who was an influential English economist who contributed to the critique of mercantilist policies during Industrial Revolution?
- What was a primary goal of mercantilist policies implemented by European powers during the early modern period?
- What was one major goal of European monarchs who practiced mercantilist policies in the seventeenth century?
- What was a direct result of the mercantilist policies during the 17th century?
- What distinguished the mercantilist policies of France from those of England in the 17th century?
- Which principle is central to the philosophy behind mercantilist policies?
- What was an adverse effect of mercantilist policies on colonies during the European colonial period?
- How did mercantilist policies shape colonial relationships between Europe and the Americas in the late seventeenth century?
- In what way did economic development and mercantilist policies contribute to conflicts among European powers during the Age of Discovery?
- What was a primary goal of mercantilist policies during the Age of Discovery?
- What was one key impact of mercantilist policies on colonial economies during the Age of Exploration?
- What was a main goal of mercantilist policies adopted by European powers in the late Middle Ages?
- What was one major way mercantilist policies affected domestic industries in European countries?
- Which event marked the end of mercantilist policies in Britain during the late eighteenth century?
- Which event in the late eighteenth century marked a shift away from mercantilist policies across Europe?
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