Mercantilism

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Mercantilism

Post  CicelyS on Thu Oct 30, 2014 6:31 pm

Mercantilism was developed in the 1500's in Europe as a new economic policy. Mercantilists believed there was a fixed amount of wealth in the world and that the prosperity of nation depends on it's wealth and trade. They strongly thought that a favorable balance of trade was the key to a successful nation. Balance of trade in the comparison between income (imports) and outcome (exports). To have a favorable balance of trade is to have a balance of trade that essentially has more exports than imports, as this provides the most money for the country. It's also favorable to have more valuable exports than imports. This new system intensified the competition. For one country to become wealthier and more powerful, they had to take wealth and power away from another nation which fueled the competition between nations.
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Mercantilism

Post  Joshua T on Fri Oct 31, 2014 10:53 pm

When you trade. One country is exporting their goods, and the other one is importing goods from the country that is exporting it to them. There is obviously going to be one country that makes profit. There will be another country that will loose money. This is called balance of trade.

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