Explain the relationship between mercantilism and colonialism. Can there ever be a profit without one party being short-changed? Explain.
Mercantilism was the belief that colonies existed to enrich the mother country.
Ms. Sue I am having trouble on this question, please help, thanks
You're right about the relationship. Mercantilism depended upon the colonies supplying the raw materials for manufacturing. It required virtual slave labor in the colonies to obtain these raw materials.
In the case of mercantilism/colonialism, the profits all went to the imperialistic country. The colonies got almost none of the profits.
However, it's possible today that companies pay a fair price for labor and raw materials and make a reasonable profit. Even when we pay Chinese labor small amounts to make clothes, for instance, the companies make a profit. But the laborers often make more than they would have without the western countries.
I was embarrassed to pay $5.00 for hand-embroidered t-shirts in Vietnam a couple years ago. But, the people who did the embroidery still made more money than they would have without this employment. It was sufficient to provide them with housing and food.
thank you Ms. Sue. I really appreciate your help, thanks
Certainly, I'd be happy to help!
The relationship between mercantilism and colonialism can be understood by looking at the economic system of mercantilism and its impact on the establishment and operation of colonies.
Mercantilism was an economic theory that emerged in the 16th and 17th centuries, which viewed wealth and power as being directly linked. According to this theory, a country's wealth was measured by its reserves of precious metals, particularly gold and silver. Mercantilists believed that a nation's wealth could be increased by promoting exports and limiting imports.
Colonialism, on the other hand, refers to the practice of acquiring and maintaining colonies in order to exploit their resources and expand the influence and wealth of the mother country. During the era of mercantilism, colonialism was closely tied to economic objectives, as colonies were seen as valuable sources of raw materials and markets for the mother country's manufactured goods.
Under the mercantilist system, colonies were expected to provide the mother country with essential resources, such as agricultural products, minerals, and other commodities. These resources were then shipped back to the mother country, where they were transformed into finished goods and sold at a profit.
The relationship between mercantilism and colonialism can be seen as a symbiotic one, but it was not without its drawbacks. Colonies were often subjected to strict regulations and restrictions in order to maximize profits for the mother country. They were sometimes forced to produce certain goods exclusively for the mother country while being prohibited from trading with other nations. This system led to a one-sided economic relationship, where the colonies' resources were exploited for the benefit of the mother country.
In regards to your second question, it is possible for both parties to benefit and make a profit without one party being short-changed. In modern terms, this is often referred to as a win-win situation. In a fair and balanced trade relationship, both parties engage in mutually beneficial exchange, where they freely agree to trade goods or services of equal value.
For example, if two individuals or countries engage in trade where both parties have something of value to offer, and there is a fair exchange of goods or services, then both parties can make a profit without one party being short-changed. The key to achieving such a situation is ensuring fairness, transparency, and equality in the trading process.
Additionally, advancements in international trade and globalization have led to the development of more inclusive and equitable trade systems, such as free trade agreements and multi-lateral trading organizations. These frameworks aim to promote fair trade practices and minimize the likelihood of one party being disadvantaged.
I hope this explanation helps you understand the relationship between mercantilism and colonialism, as well as the possibility of profit without one party being short-changed. If you have any more questions, feel free to ask!