What was the mercantilist system quizlet?
Mercantilism is a system based on the benefits of profitable trading. Countries made trade policies that favored money going from the colonies to the mother country. The purpose of the American colonies was to supply raw materials and serve as a market for the finished goods that had been made in England.
What is the mercantilist system?
Mercantilism is an economic practice by which governments used their economies to augment state power at the expense of other countries. In mercantilism, wealth is viewed as finite and trade as a zero-sum game. Mercantilism was the prevalent economic system in the Western world from the 16th to the 18th century.
What was the purpose of mercantilism quizlet?
What is the purpose of Mercantilism? To give England most of the profit from trade with the other colonies.
What is the theory of mercantilism quizlet?
The economic theory of mercantilism stated that a country’s power was based on its wealth which included military, political, and gold and silver. In order for a country to have such wealth, it must obtain a favorable balance of trade, meaning more export than import.
What was the main purpose of mercantilist policies?
Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes monarchy, aristocracy, clericalism, militarism, imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal.
What is the purpose of capitalism?
Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.
Why were colonies important in a mercantilist system quizlet?
During the Commercial Revolution, Colonies were important to European mercantilism because they provided goods that could be sold in trade. This is important because mercantilism is based on the idea that money is wealth.
In what ways was the mercantilist system a burden and a benefit to the colonists?
Under mercantilism, colonies were important because they produced raw materials for the mother country, goods that the country would have to import otherwise (things like grain, sugar, or tobacco). The colonies also gave the mother country an outlet for exports, which increased jobs and industrial development at home.
What is the major purpose of mercantilism?
What is the main goal of mercantilism?
The mercantilist goal was to maximize a nation’s export surplus—the balance of trade, which was equated with the future prosperity and power of the realm—and the means were cheap production inputs, that is, cheap raw materials (for which colonies proved useful) and cheap, and therefore poor, labor at home.
What is the basic theory of mercantilism?
Mercantilism is an economic theory that holds that a nation’s wealth can increase when the government regulates the nation’s wealth by maximizing exports and reducing imports. Mercantilism was developed in the 16th and 18th centuries.
What was the principle of mercantilism?
Mercantilism is based on the principle that the world’s wealth was static, and consequently, many European nations attempted to accumulate the largest possible share of that wealth by maximizing their exports and by limiting their imports via tariffs.