The Importance Of Mercantilism

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According to dictionary.com mercantilism is "a theory prevalent in Europe during the 17th and 18th centuries asserting that the wealth of a nation depends on its possession of precious metals and that the government of a nation must maximize the foreign trade surplus, and foster national commercial interests, a merchant marine, the establishment of colonies, etc.” In other words, mercantilism was the main economic theory in the 1600 to 1800-century. Government regulated their economy to limit imports and maximize exports. It was believed that by doing this the nation 's wealth will increase because of the surplus in the country balance of trade. The trade balance was represented by how much gold and silver the country held. The mercantilism was so important to the English because it was the main economy system that they used. It benefits the English in two ways. First, the colonies provided the raw materials for the mother country, and the mother country sold them manufactured goods in return, so the Americans had to accept whatever price for their products the British offered them, no matter how low it was. Second, the Americans had to buy goods from the British, no matter how high the price was. On the other hand, this trade had a very strong impact in the Americans colonies because it was England who controls the prices on the market creating a monopoly environment. The principle mechanism that the English use was the Navigation Acts due to the fact that it

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