Mercantilism

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Mercantilism

Post  Vasilisa on Thu Oct 23, 2014 12:00 pm

Mercantilism was a theory that prosperity of the nation depends on how much gold or silver this state has. They also believed that there was an amount of gold and silver in this world and if one nation got rich, that meant that the other nation for poor. So the nation kept an intense competition between them. For nations to have more gold and silver, they tried to have a favorable balance of trade.
Balance of trade is the difference in value between what nations imports and exports over time. Imports is what a nation buys from another nation, while exports is what a nation sells to the other nation. If the nation has a favorable balance of trade, then the nation has more exports than imports. Also if nation exports manufactured goods than they would earn more money since manufactured goods cost way more than raw goods.

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Re: Mercantilism

Post  Sarah Marti Roy on Thu Oct 23, 2014 6:34 pm

Balance of trade made it a competition for power between the nations. They would take it away from other nations. It's crazy how gold and silver determined a nations wealth. This chapter was really interesting but confusing as well. Good post Lisa, keep it up (:
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Balance of Trade

Post  Joshua T on Mon Oct 27, 2014 8:38 am

Balance of trade is the profit that a nation makes between their exports and their imports. Their balance of trade could be negative, or it could be positive. If it is negative, you are buying more than what you are selling. If its positive, you are selling more than what you are buying.

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Re: Mercantilism

Post  CicelyS on Wed Oct 29, 2014 11:40 pm

From your information, I would assume that the Dominican Republic has an unfavorable balance of trade. Many people import what we cannot purchase here online therefore contributing to the amount of imports vs the amount of exports.
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