what was the basic economic structure esablished by england?
import/export economy
mercantilism
market economy
capitalism
The basic economic structure established by England was mercantilism.
The economic structure established by England can be described as a combination of mercantilism and capitalism.
1. Mercantilism: In the early modern period, England pursued a policy of mercantilism. This economic theory emphasized accumulating wealth through a favorable balance of trade, where exports exceed imports. England sought to control colonies and establish monopolies to secure valuable resources and markets for its manufactured goods.
2. Capitalism: Over time, England transitioned towards a market economy and the principles of capitalism. This economic system is characterized by private ownership of resources and the means of production, competition, and profit maximization. In this system, individuals and businesses are free to engage in trade and investment. England played a vital role in developing capitalism through the Industrial Revolution, a period of significant economic and technological change.
So, the basic economic structure established by England included elements of both mercantilism and capitalism.
The basic economic structure established by England can be described as a combination of mercantilism and capitalism.
To understand this, we need to break down the terms:
1. Mercantilism: Mercantilism is an economic theory that was prominent in Europe during the 16th to 18th centuries. Under mercantilism, the primary goal of a nation's economy was to accumulate wealth, particularly in the form of precious metals, through a strong focus on exporting goods and restricting imports. This led to colonies being established as sources of raw materials and markets for manufactured goods.
2. Capitalism: Capitalism is an economic system where the means of production and distribution are predominantly privately owned, and individuals are driven by profit motives. In a capitalist system, markets determine the prices and quantities of goods and services. Competition and the pursuit of self-interest are important factors that drive the economy.
Now, coming back to the economic structure established by England, the country initially followed a mercantilist approach during the era of colonialism. England sought to acquire wealth through the establishment of colonies, which served as sources of raw materials, as well as captive markets for English manufactured goods. This arrangement allowed England to accumulate wealth and maintain a favorable balance of trade.
Over time, as industrialization progressed, England also embraced elements of capitalism. The development of factories, the growth of the industrial sector, technological advancements, and the rise of a market-based economy all contributed to England becoming one of the early pioneers of capitalism. Capitalism allowed for private ownership, competition, and profit-seeking behavior, which became driving forces behind England's economic growth and expansion.
Therefore, while both mercantilism and capitalism influenced England's economic structure, it evolved from a mercantilist approach towards a more market-driven capitalist system over time.