Mercantilism

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Mercantilism

Post  ebznski on Fri Oct 31, 2014 11:14 am

In the 1500's Europeans developed a new economic policy called mercantilism. Mercantilists believed that there was a fixed amount of wealth in the world and for one country to gain wealth another country would become poorer. They believed that the prosperity of a nation depended on how much gold and silver they have (most of this gold and silver was imported from their colonies). For this to occur countries had to have a favorable balance of trade. The balance of trade was how much you import versus how much you export. For it to be favorable countries had to obtain more money through exports rather than spending more on imports. This was the reason for the creation of colonies. When European countries had a colony in the Americas they they would sell those new produce to obtain more money for the main country.
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Re: Mercantilism

Post  Romane D. on Tue Dec 02, 2014 7:07 am

I remember studying about this and i I think mercantilism was really important because it has influenced the economy in the world and how things work. It is true that the balance of trade is extremely important and very hard for countries to keep it balanced because they have to produce certain things a large amount, or also try to sell it to get an equal amount of things that they need to provide their nations.
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Re: Mercantilism

Post  CicelyS on Wed Dec 03, 2014 10:56 am

I feel like balance of trade during mercantilism was probably one of their more important ideas. It is still very relevant today, and is one of the reasons that the Dominican Republic specifically is suffering economically due to the fact that there are more imports than exports. Great post Smile
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Re: Mercantilism

Post  Sarah Marti Roy on Wed Dec 03, 2014 11:08 am

Good post. The US is suffering greatly because of this, they owe a lot of money to different countries. We studied this a while back, it was one of my favortie topics so far. The fact that people thought that there was a certain amount of power in the world that was calculated in gold and silver is crazy. like cicely said, the Dominican Republic is suffering greatly because there are more imports than exports.
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