Why did mercantilism in Spain fail to produce the positive benefits seen in England and France?(1 point)
There are several reasons why mercantilism in Spain failed to produce the positive benefits seen in England and France:
1) Inefficient economic policies: Spain's economic policies were often based on extracting wealth from its colonies rather than focusing on developing domestic industries. The Spanish government heavily regulated trade and limited competition, which hindered economic growth and innovation.
2) Over-reliance on silver and gold: Spain depended heavily on gold and silver from its colonies, especially in the Americas. This reliance resulted in the neglect of other productive sectors of the economy and created an imbalance in the economy.
3) Lack of diversification: Unlike England and France, Spain failed to diversify its economy and relied heavily on a few sectors such as agriculture and mining. This lack of diversification made Spain vulnerable to economic shocks and limited growth opportunities.
4) Decline in productivity and competitiveness: Spanish industries faced limited competition and lacked innovation. There was less incentive for entrepreneurs to invest and improve productivity, leading to a decline in competitiveness compared to other European nations.
5) Poor governance and corruption: The Spanish monarchy had a centralized system of governance, which often led to corruption and mismanagement. The inefficient bureaucracy impeded economic development and hindered entrepreneurship.
Overall, these factors and others contributed to the failure of mercantilism in Spain to produce the positive benefits seen in England and France.