Mercantilism Essay -- Economics

Mercantilism Mercantilism is the economic theory that a nation's prosperity depends on its supply of gold and silver; that the total volume of trade is unchangeable. This theory suggests that the government should play an active role in the economy by encouraging exports and discouraging imports, especially through the use of tariffs. Spain and England used the mercantile system to benefit the mother countries. The mercantile system had special regulations, which usually extracted some sort of reaction from the colonies. If necessary, the policies would be changed to better suit the mother country. The favorable balance of trade was upheld through certain regulations. No foreign trade was allowed for the colony unless it passed through the mother country first and it moved on mother country ships. Furthermore, no foreign settlers were allowed in the colony. No colonial industry was allowed. The colony had to remain dependent on the mother country for industrial necessities, it was not allowed to become competition for foreign markets, and migrations restrictions limited availability of skilled artisans. Regulatory taxation was another mercantile regulation. Protective â€Å"tariffs† were used on foreign imports to the colony, and revenue was raised for the mother country. No colonial self-government was allowed, either. The mother country avoided challenges to its economic authority, and the colonies couldn’t enact pro colonial/anti-mother country laws. The Spanish used three mercantilist devices to protect their commercial monopoly in the New World. They prohibited foreign ships from entering Spanish colonial ports, and no foreigner could send goods to the colonies or take gold bullion out of Spain in pay... ...land, vigorous attempts to prevent smuggling in the American colonies after 1765 led to arbitrary seizures of ships and aroused hostility. The legislation had an unfavorable effect on the Channel Islands, Scotland (before the Act of Union of 1707), and especially Ireland, by excluding them from a preferential position within the system. Shaken by the American Revolution, the system, along with mercantilism, fell into decline. The acts were finally repealed in 1849. Mercantilism was widely used in many different superpowers in the 18th century. Depending on what superpower used it, the colonies under the superpowers were restricted from doing certain things, and had to follow certain mercantile regulations. The mercantile systems most likely ended up with the colonies undergoing revolutions (America and England) which resulted in the end of mercantilism. Mercantilism Essay -- Economics Mercantilism Mercantilism is the economic theory that a nation's prosperity depends on its supply of gold and silver; that the total volume of trade is unchangeable. This theory suggests that the government should play an active role in the economy by encouraging exports and discouraging imports, especially through the use of tariffs. Spain and England used the mercantile system to benefit the mother countries. The mercantile system had special regulations, which usually extracted some sort of reaction from the colonies. If necessary, the policies would be changed to better suit the mother country. The favorable balance of trade was upheld through certain regulations. No foreign trade was allowed for the colony unless it passed through the mother country first and it moved on mother country ships. Furthermore, no foreign settlers were allowed in the colony. No colonial industry was allowed. The colony had to remain dependent on the mother country for industrial necessities, it was not allowed to become competition for foreign markets, and migrations restrictions limited availability of skilled artisans. Regulatory taxation was another mercantile regulation. Protective â€Å"tariffs† were used on foreign imports to the colony, and revenue was raised for the mother country. No colonial self-government was allowed, either. The mother country avoided challenges to its economic authority, and the colonies couldn’t enact pro colonial/anti-mother country laws. The Spanish used three mercantilist devices to protect their commercial monopoly in the New World. They prohibited foreign ships from entering Spanish colonial ports, and no foreigner could send goods to the colonies or take gold bullion out of Spain in pay... ...land, vigorous attempts to prevent smuggling in the American colonies after 1765 led to arbitrary seizures of ships and aroused hostility. The legislation had an unfavorable effect on the Channel Islands, Scotland (before the Act of Union of 1707), and especially Ireland, by excluding them from a preferential position within the system. Shaken by the American Revolution, the system, along with mercantilism, fell into decline. The acts were finally repealed in 1849. Mercantilism was widely used in many different superpowers in the 18th century. Depending on what superpower used it, the colonies under the superpowers were restricted from doing certain things, and had to follow certain mercantile regulations. The mercantile systems most likely ended up with the colonies undergoing revolutions (America and England) which resulted in the end of mercantilism.