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Mercantilism was a common policy. Adam Smith wrote " The Wealth of Nations" as an argument against it.
http://en.wikipedia.org/wiki/Mercantilism
" Mercantilism is an economic theory that holds the prosperity of a nation depends upon its supply of capital, and that the global volume of trade is "unchangeable." Economic assets, or capital, are represented by bullion (gold, silver, and trade value) held by the state, which is best increased through a positive balance of trade with other nations (exports minus 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."

2007-11-15 11:38:30 · answer #1 · answered by meg 7 · 0 0

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