what is mercantilism ?

Question

I am in grade seven and I need a definition on mercantilism

Answer 1

Mercantilism is an economic theory which holds that the prosperity of a nation depends upon its supply of capital, and that the global volume of trade is "unchangeable." The amount of capital, represented by bullion (amount of precious metal) held by the state, is best increased through a positive balance of trade with other nations, with large exports and low imports. Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy, by encouraging exports and discouraging imports, especially through the use of tariffs. The economic policy based upon these ideas is often called the mercantile system.

Answer 2

Mercantilism is an economic theory which holds that the prosperity of a nation depends upon its supply of capital, and that the global volume of trade is "unchangeable." The amount of capital, represented by bullion (amount of precious metal) held by the state, is best increased through a positive balance of trade with other nations, with large exports and low imports. Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy, by encouraging exports and discouraging imports, especially through the use of tariffs. The economic policy based upon these ideas is often called the mercantile system.

Answer 3

This is an theory (idea) that thought that a nations prosperity (wealth ) depended on the amount of Gold and silver it had. Also that the total volume of trade was unchangeable. This made it so that the government played a very active role in the economy and encouraged exports and discouraged imports. Tariffs were used to aid in this theory.

Answer 4

American Heritage Dictionary
1. 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.
2. The practice, methods, or spirit of merchants; commercialism.

Notes: After the decline of feudalism based on local agriculture, the focus turned to revenue based on trade, and encouraging more exports than imports. So the government sought to protect the interest of merchants, especially in their colonies whose production was considered under the jurisdiction of the parent country.

Additional notes: The problem has always been that these colonies eventually develop their own identity and need for independence and self-government. To this day, corporations which rely on the labor of less developed countries to make profits still face the same issues of "fair trade" when workers become educated and seek democratic control of their own economies instead of the majority of profits being pumped out of their countries by foreign interests. The issue of "fair trade" is a prominent problem in Africa and South America, as well as in Asia where efforts to combat poverty through "microcredit" financing of local business ownership just won a Nobel Prize. See also Grameen Foundation. http://www.grameenfoundation.org

Answer 5

an economic system developing during the decay of feudalism to unify and increase the power and especially the monetary wealth of a nation by a strict governmental regulation of the entire national economy usually through policies designed to secure an accumulation of bullion, a favorable balance of trade, the development of agriculture and manufactures, and the establishment of foreign trading monopolies

Answer 6

Both short term and future mercantilism is effective mercantilism ways, however, future mercantilism has many important benefits. These embody the impact of combining, the chance to earn from dividends, reduction of the impact of value fluctuations, the flexibility to create corrections during a additional timely manner, less time spent watching stocks. 1. combining Time is investor’s relief as a result of it provides combining time to figure its magic. combining is that the operation wherever interest on your cash successively earns interest and is additional to your principal. 2. Dividends Holding a stock to require advantage of payouts from dividends is differently to extend the worth of associate investment. Some firms provide the flexibility to reinvest dividends with further share purchases thereby increasing the general price of your investment. in addition, dividends square measure additional a mirrored image of a company’s overall business strategy and success than volatile value fluctuations supported market emotions. 3. Reduction Of The Impact Of value Fluctuations In the future investment the persons is a smaller amount suffering from short term volatility. The market tends to handle all factors that keep dynamical within the short term. therefore an individual concerned in future investment or mercantilism won't be affected the maximum amount by short term instability attributable to factors like liquidity, fancy of a selected sector or stock which can build the worth of a stock over or undervalued. within the future, sensible stocks which can are affected attributable to another factors (in the short term) can offer higher than average returns. Long-term investors, significantly people who invest during a diversified portfolio, will last out down markets while not dramatically touching his or her ability to achieve their goals. 4. creating Corrections It is extremely seemingly that you simply may deliver the goods a continuing come over a protracted amount. the truth is that there will be times once your investments earn less and alternative times once you build lots of cash briefly term. There might also be times once you lose cash briefly term however as you're in quality stocks and have long perspective of investment you may earn sensible returns over a amount of your time. There square measure perpetually times once some stocks don't perform associated it's the wise option to pull out of an investment. With a protracted term perspective supported quality stocks, it's easier to create selections to alter during a additional timely manner while not the urgency that accompanies short term and day mercantilism ways chasing volatile changes. 5. Less Time Spent watching Stocks Unlike day mercantilism which will need constant watching of stocks throughout the day to take advantage of intraday volatility, future mercantilism is distributed effectively employing a weekly watching system. This approach is most frequently way less nerve-racking than observance costs perpetually on a each day. Overall, investors that begin early and keep within the market have a way higher probability of riding out the dangerous times and capitalizing on the periods once the market is rising.