Mercantilism

 __Mercantilism__- Merchants from colonies (raw material) trade only with empire (manufactured goods) creates favorable balance of trade for mother country like imperialism on steroids. (**Example--India)** __Another deffinition of mercantilism-__ The theory and system of political economy prevailing in Europe after the decline of feudalism, based on national policies of accumulating #|bullion, establishing colonies and a merchant marine, and developing industry and mining to attain a favorable balance of trade. ​


 * Usally the conquereing countries used force. Like the Power Rangers. They brought death and destruction to their enemies. Then in the end they got what they desired. In Britians case they got India.**

 Mercantilism is economic nationalism for the purpose of building a wealthy and powerful state. Adam smith coined the term "Mercantile system" to describe the system of political enonomy that enriched the country by restraining imports and encouraging exports. The goal was to achieve a "favorable" balance of trade that would bring gold and silver into the country, and maintain domestic employment.


 * //An eighteenth-century Scotts professor of moral philosophy who influenced the founding fathers of the United States, was a fierce critic of mercantilism and convincing advocate of free trade. He coined the term "invisible hand" to describe how, without any central direction, in a free market economy the butcher, the baker, and the candlestick maker provide what people need. It is, he said, as though there is an invisible hand guiding them to meet people's needs.//**

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An outline of Historical background on Mercantilism. __[|Historical background]__ Which statement demonstrates a major characteristic of mercantilism in colonial Latin America? (1) Colonies developed local industries to compete with Spain. (2) Spanish colonies traded freely with English colonies. (3) Spain instituted democratic governments in its colonies. (4) Colonies were a source of raw materials for Spain.

Which policy is portrayed in this illustration? (1) nonalignment (3) perestroika (2) laissez-faire capitalism (4) mercantilism According to the European policy of mercantilism, colonies should (1) benefit the mother country (2) trade openly with various countries (3) be left alone to manage their own affairs (4) attempt to gain independence as soon as possible