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This lesson discusses the theory of mercantilism

Nandini Maharaj
MA in Applied Human Rights from Sheffield Hallam University, BA (Hons.) History from LSR, reader, dancer, love to teach, AIR 42 in 2018 UPSC

Unacademy user
sir aren't you uploading the pib news analysis videos these days ?

  2. unacaden .BA (Hons.) History . Hobbies: reading, dancing . Rate, review and recommend! Lady Shri Ram College for Women MA Applied Human Rights . Sheffield Hallam University Kapila Hingorani Scholar Follow me @ user/NandiniMaharai/courses

  3. Mercantilism -Intervention of state in commercial activities for the increase of national wealth and power An economic theory and practice dominant in Europe from the 16th to the 18th century Promoted governmental regulation of a nations economy to augment state power at the expense of a rival national power Economic counterpart of political absolutism -A national economic policy aimed at accumulating monetary reserves through a positive balance of trade Adam Smith was the first to use the word

  4. Features of mercantilism: .High tariffs .Forbidding colonie to trade with other nations Monopolising markets with staple ports Banning export of gold and silver .Forbidding trade to be carried in foreign ships .Subsidies on exports Promoting manufacturing through research or direct subsidies Limiting wages Maximising the use of domestic resources .Non tariff barriers

  5. Characteristics Foreign trade emphasis to procure gold and silver from other countries Emphasis on money - discarding barter Profit and interest More population means more production .Self sufficiency Regulation of trade and commerce .Chief characteristics: self-dependency, industry, mines, commerce, naval power, colonies

  6. Criticism Physiocrats in France Adam Smith: Wealth of Nations David Hume Both known as founding fathers of anti-anti-mercantilist thoughts Noted the impossibility of the mercantilists goal of a positive balance of trade .Importance on bullion was confusion of wealth with mone bullion was just the same as any other commodity

  7. Mercantilist regulation were revoked in Britain in the 18th century -19th century Britain fully embraced free trade