ipl-logo

Classical Mercantilism Analysis

1994 Words8 Pages

Introduction
The classical mercantilism established in the 16th and 17 century existed to build a nation at the expense of another. The powerful state takes advantage of the weaker ones in order to pursue its national interest and defend its national security. Thus I can define classical mercantilism as a political theory that was found in the 16th and 17th century with the objectives to encourage states to pursue more wealth in the international relations for them to build a military political powerful state that will be able to defend national security and colonize other states as well. Usually the classical mercantilism dates back to the era of imperialism and colonialism. However after states have moved away from that era, they realized …show more content…

China exports its manufactured goods to Sub-Saharan African states, selling them at a cheaper price to attract business from African local traders. The local traders in Africa cut ties or decline in number of ties with their fellow local producers turning to a Global supply network where doing business with china increase. The low quality product China exports to Sub-Saharan African states at a low price promote the economy of China in a sense that most African local traders start buying products from China and lose interest in local products. As a results, local manufacturers’ businesses suffer profit and end up shutting due to unsuccessful progress in their economic development. This does not affect local businesses only but also those who have been employed to work in those factories, thus result in …show more content…

They believed that china is there to save them, because of the cheap prices. From the following interview, it became clear that local traders realised the danger of china manufactured products after establishing trade relationship with china. Some of them still believe that china is there help to develop their economy even today. However the reality was stated by one interviewed traders in the article who stated that, “The Chinese goods are cheap and the Chinese are also selling the same products, thus taking away our customers and reducing our profits - we cannot price our goods lower than them. The Chinese settled their shops in the market and compete with the local traders. Their prices are very good so customers prefer them (Market trader, houshold goods, Marché Rose,

Show More
Related

  • Allan Gotlieb Canada's Global Promise Summary

    672 Words  | 3 Pages

    In the articles “Romanticism and realism in Canada’s foreign policy” by Allan Gotlieb, and “Canada’s global promise” by Jennifer Welsh, both authors argue the need for Canada to re-evaluate their current foreign policy however, differ in the way of how Canada should strive for international growth. Firstly, both authors contend that due to Canada’s lack of involvement of being the “peacekeeper” that they use to be, Canada’s reputation of being the global player has taken a serious hit. In Welsh’s article she mentions many Canadians want to be more active on the world stage, and want to spend more money on over seas development, and such UN projects, however the problem “is that Canadians are rarely asked to make difficult trade-offs in spending”. As a result, the Canadian government has to make cuts in spending on such military resources, and programs, in

    Read More

  • Discuss The Economic Effects That Were Cause With Silver Dbq Essay

    702 Words  | 3 Pages

    In document 4 Ralph Fitch, a British merchant, is trying to join in on the trade and for the British government to join to be able to obtain more money. They see how the Portuguese is making money and the trade and profits being made between them and China and believe they should join the trade to earn some of the profit. A similar situation goes on in document 7 He Qiaoyuan, a Ming dynasty court official, he try's to convince the emperor to repeal the on foreign trade. He tells the emperor how Chinese merchants are trading there goods for profit and that they could be the ones making the profit instead of others. But in document 8 there was a conflict going, Charles D' Avenant, an English scholar, tells about the restricting Indian textiles.

    Read More

  • How Did Mexico Come To Spanish Rule

    944 Words  | 4 Pages

    During this time period, European colonies were exploring the world looking for new lands to conquer and colonize. The ideology of the time was mercantilism, which meant the strength of a colony was determined by the wealth of the colony. They would export the riches they obtained in their newly colonized land and export them for profit adding to their wealth. The European colonies also tried searching for faster trade routes, or land located along them in order to increase the profit they received from trades. New lands also offered new materials to trade which could allow them to dominate the trade markets.

    Read More

  • Compare And Contrast The French And Indian War

    801 Words  | 4 Pages

    Mercantilism is the theory or policy that started in the 1600’s. It is a system in which trade generates money and profitable balances. Mercantilism was introduced to the colonies by England. They passed many laws such as the Navigation Laws, which gave them control to our trade. This affected the colonies because any trade done with Europe had to first pass through England.

    Read More

  • Summary: Cost Of Boycotting Sweatshop Goods

    1461 Words  | 6 Pages

    Consumers in Western cultures, such as those from Canada, have developed consistent trends in their buying habits. The instinct of a consumer is to buy goods based on their cheap price other than anything else, such as the location in which the goods were made. Whether the goods were made by a in a local Canadian factory or by a sweatshop laborer in an underdeveloped Third World country doesn’t matter nearly as much to the consumer as the price does. This is because Canadian consumers want to save money, especially with their wages beginning to go down. What these people don’t realize, however, is that the wages going down and the low price of foreign made goods are related.

    Read More

  • Mercantilism: Key Cause Of The American Revolution

    987 Words  | 4 Pages

    TASK # 1 MERCANTILISM Since its founding, the United States of America has been characterized by mercantilism. Due to its ability to increase commerce, production, and foreign investment, mercantilism was a key factor in the early years of the country's economic prosperity. In an effort to make colonies dependent on British goods and services, it was also one of the fundamental causes of the American Revolution.

    Read More

  • The Influence Of European Imperialism After 1850

    1267 Words  | 6 Pages

    In the years leading up to 1850, European powers grappled for political and economic dominance of the international market. The Age of Discovery during the early modern period in Europe posed as period that redefined the idea of exploration. No longer was the reason for subjugating a group of people to European rule the main reason to colonize. Rather, the main reason for imperialism after 1850 was in regards to extraction of natural resources and economic control of the world market. After 1850, it became apparent that interests in overseas empires was ultimately inevitable as Europe began to industrialize and gain military and technological power.

    Read More

  • Early American Imperialism

    1364 Words  | 6 Pages

    For centuries, the economic and cultural systems of Europe had been based upon mercantilism, the idea that resources should be extracted from undeveloped colonies and transported to a home country for manufacture into valuable goods. For many years America was trapped in this system, but after gaining independence the new country finally had a chance to grow and develop unimpeded. As it began its increasingly rapid expansion to the west, it began to enact its own version of mercantilism, one that incorporated a specific set of values and came to form a new American

    Read More

  • Welfare Reform Research Paper

    1385 Words  | 6 Pages

    The roles and responsibilities of the state government had suddenly evolved. The Progressive Era was a time of political and economic transformation in the United

    Read More

  • Mercantilism In The 17th And 18th Centuries

    1533 Words  | 7 Pages

    In the 17th and 18th centuries, European kingdoms began to discover the economic system of Mercantilism. Mercantilism revolved around trade and was based on the strong beliefs in the benefits of profitable trading. During this time, the Dutch increased in wealth and became one of England’s biggest trading competitors. The Dutch became so successful that if the English were to succeed, they would need to get rid of Holland’s control over the carrying trade in the North. This feud between the two continued to grow worse as the Dutch sought to drive the English from the commerce of the countries.

    Read More

  • Pre Colonial Imperialism

    1579 Words  | 7 Pages

    Our ancestors lived in static societies, where success meant taking things from others. They created wealth only rarely, and in the end they could never create enough to meet needs. The colonial conquests, the desire to form large empires by conquering weaker countries and peoples existed before the era of imperialism and even before the emergence of capitalism. However, during the period of imperialism, the role and significance of the colonies change not only in comparison with pre-capitalist epochs, but also in comparison with the period of pre-monopoly capitalism. The "old" methods of colonial policy are supplemented by the struggle of monopolists for sources of raw materials, export of capital, spheres of influence, for economic and military-strategic

    Read More

  • Themes Of Before European Hegemony

    1275 Words  | 6 Pages

    Where Asia or more specifically the Chinese had an abundance in resources and a vast network of merchants, the structures which secured their society faltered in the face of adversity. Abu-Lughod’s central premise runs counter to the popular idea of Europeans becoming the de facto world power by the age of colonization or the sixteenth century, where it . The overarching historical themes in Abu-Lughod’s Before European Hegemony are the prevalence of economic trade, the culture and society which existed within these nations, and the events which shifted the necessary influence to tip the balance of power in favor of Europe’s nations. The theme of trade being the cornerstone of the then sovereign powers is discussed and detailed by Abu-Lughod, often citing instances of where it became absent or or less maintained being the signs of weakened and vulnerable nation.

    Read More

  • The Impact Of Globalization In China

    1404 Words  | 6 Pages

    First and foremost, one must acknowledge the plainly visible fact that the Chinese economy has grown exponentially since the process of integration into the global economic system began. China 's comparative advantages, particularly in the labor sector, has transformed it into the second largest recipient of FDI in the world.1 Over the course of the last 20 years, exports have grown approximately 17.1 percent per year.2 This ultimate result of this investment and trade has been an overall growth rate 8 percent per annum,3 which would have been completely unattainable without the country 's engagement in globalization. Foreign investments have

    Read More

  • Caribbean Imperialism Analysis

    1141 Words  | 5 Pages

    The dependency on Europe and North America by the Region, therefore, is the evidence of the empire the West has built by imperialism, and perpetual profit or loss of imperialism for a state, depending on which side of the divide that state stands. Imperialism does not end. The imperial power merely changes. Active, conspicuous imperialism might be latent in some states of the Region, but it surely is not absent. Independence and freedom alone can guarantee an end to imperialism, but ‘independence’ and ‘freedom’ are relative conceptions.

    Read More

  • Macro Environmental Analysis Of Nike

    2130 Words  | 9 Pages

    However, in China, there are a lot of people whose income are low, they absolutely will not buy those products. It reduced the market share. Promotion strategy and

    Read More

More about Classical Mercantilism Analysis

Open Document