Table of Contents
- 1 What were the main tenets of mercantilism?
- 2 What was the result of mercantilism?
- 3 What was one of the main factors that gave rise to mercantilism?
- 4 How did mercantilism benefit European countries?
- 5 Who benefited the most from the system of mercantilism?
- 6 What was the main tenet of mercantilism Quizlet?
- 7 What are the long-term effects of free trade?
What were the main tenets of mercantilism?
The underlying principles of mercantilism included (1) the belief that the amount of wealth in the world was relatively static; (2) the belief that a country’s wealth could best be judged by the amount of precious metals or bullion it possessed; (3) the need to encourage exports over imports as a means for obtaining a …
What was the main goal for a country in 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 was the result of mercantilism?
What were the effects of mercantilism? Mercantilism led to the creation of monopolistic trading companies, such as the East India Company and the French East India Company. Restrictions on where finished goods could be purchased led in many cases to burdensome high prices for those goods.
Which strategy is in a country’s best interests according to the main tenet of mercantilism?
The main tenet of mercantilism was that it was in a country’s best interests to maintain a trade surplus, to export more than it imported. By doing so, a country would accumulate gold and silver and, consequently, increase its national wealth, prestige, and power.
What was one of the main factors that gave rise to mercantilism?
Some economic, political, religious and cultural factors were responsible for the emergence of mercantilism.
How is the goal of mercantilism accomplished?
A government that engaged in mercantilism advanced the goals of increasing their wealth by increasing their supply of gold, silver, and trade value by engaging in a protectionist role in the economy—promoting exports and discouraging imports, especially through the use of tariffs.
How did mercantilism benefit European countries?
During the European Age of Exploration, the nations of Europe adopted a new economic policy called mercantilism. Wealth, after all, allowed nations to build strong navies and purchase vital goods. As a result, the goal of every nation became the attainment of as much wealth as possible.
What country benefited from mercantilism?
Mercantilism, an economic policy designed to increase a nation’s wealth through exports, thrived in Great Britain between the 16th and 18th centuries. Between 1640-1660, Great Britain enjoyed the greatest benefits of mercantilism.
Who benefited the most from the system of mercantilism?
What is the result of the threat of antidumping action?
The threat of antidumping action limits the ability of a firm to use aggressive pricing to gain market share in a country. This may put a firm at a competitive disadvantage to indigenous competitors in that country.
What was the main tenet of mercantilism Quizlet?
The main tenet of mercantilism was that it was in a country’s best interest to maintain a trade surplus, to export more than it imported. Advocated government intervention to achieve a surplus in the balance of trade. Recommended policies to maximize exports and minimize imports.
Which statement best describes the first theory of international trade?
The first theory of international trade emerged in England in the mid-16th century. Referred to as the theory of comparative advantage, its principle assertion was that gold and silver were the mainstays of national wealth and essential to vigorous commerce. (T/F) The flaw with mercantilism was that it viewed trade as a zero-sum gain.
What are the long-term effects of free trade?
When a movement toward a free trade regime occurs, the pain is a long-term phenomenon, while the gains from trade, once the transition has been made, are both insignificant and short-term. (T/F) Economic growth is positively affected by free trade. (T/F)
What is the relationship between free trade and growth?
(T/F) When a movement toward a free trade regime occurs, the pain is a long-term phenomenon, while the gains from trade, once the transition has been made, are both insignificant and short-term. (T/F) Economic growth is positively affected by free trade.