What were the fundamental ideas associated with mercantile theory? Did they work? Which European country was most successful in establishing a mercantile empire? Least succesful? Why?
That's 5 questions. I'll get you started.
http://www.britainexpress.com/History/Mercantile-Theory.htm
Do YOU think they worked?
http://academic.brooklyn.cuny.edu/history/dfg/amrv/amrv-ii.htm
ya thanks so much-sorry about all the questions, it was one question according to our teacher.
You're very welcome.
The fundamental ideas associated with mercantile theory revolve around the belief that a nation's wealth and power depend on accumulating precious metals, such as gold and silver, through a favorable balance of trade. The key principles of mercantilism include:
1. Favorable Balance of Trade: Mercantilists believed that exporting more goods than importing would result in a surplus of precious metals, increasing a nation's wealth.
2. Colonies and Markets: Establishing colonies provided access to raw materials, while controlling markets ensured the sale of finished goods.
3. Protective Tariffs: Governments imposed tariffs to protect domestic industries from foreign competition, aiming to achieve self-sufficiency and reduce imports.
4. Strong Role of Government: Mercantilism emphasized state intervention and regulation, with the government actively promoting and protecting the interests of domestic industries.
As for their effectiveness, while mercantilism initially yielded some benefits for countries adopting these policies, there were inherent limitations and negative consequences. For instance, focusing on accumulating precious metals often led to neglecting other economic sectors and hindered overall development. The strict regulations and protectionist measures imposed by mercantilism restricted trade and hindered innovation. As economic theories evolved, the shortcomings of mercantilism became apparent.
In terms of success in establishing a mercantile empire, several European countries pursued this model during the 16th to 18th centuries. Among them, the most successful was arguably Great Britain. British mercantilist policies, such as the Navigation Acts, fostered colonial trade and expanded their influence around the globe. The British Empire flourished through the establishment of colonies, control of key trade routes, and the growth of a formidable navy.
On the other hand, assessing the least successful European country in establishing a mercantile empire is subjective, as different countries faced unique circumstances and goals. However, some have argued that Spain, despite its initial success with the influx of wealth from the Americas, struggled to maintain its economic dominance. Spain's heavy dependence on silver and gold hindered other sectors of the economy, while excessive spending and inflation eroded their wealth. Additionally, conflicts, mismanagement, and competition from other European powers contributed to Spain's decline.
It's important to note that historical events and interpretations may provide different perspectives on the success or failures of countries in implementing mercantilism, and nuanced analysis is necessary to fully understand these complexities.