Characteristics Of Mercantilism

MERCANTILISM
Mercantilism was another theory of economics. It was prevailing in the Europe during the sixteenth to the eighteenth century. This theory mainly encouraged government guidelines of the country 's economy. The main purpose was to enlarging the power of the state at the cost of the opposing national powers.
It was the economic equivalent of political tyranny or absolute realms. The term Mercantilism mainly includes a national economic policy for amassing monetary capitals through a positive trade balance mainly of finished goods.
Historically, such policies always resulted in wars and also encouraged colonial enlargement.
Usually this Mercantilist theory differs from one writer to another. But this has grown over time. Increased rates primarily on manufactured goods, are an almost universal feature of mercantilist policy. Other policies have included the following: -
• Unfriendly colonies to trade with other nations;
• Dominating markets with essential ports;
• Banning the export of gold and silver, even for outflows;
• Not allowing trade to be carried in foreign ships;
• Supports on exports;
• Promoting manufacturing through research or direct subsidies;
• Preventive wages;
• Exploiting the use of domestic resources; and
• Limiting domestic consumption through non-tariff blockades to trade.
Mercantilism in its simplest form is bullionism, yet mercantilist writers have stressed the circulation of money and reject hoarding. Their importance on monetary metals