Define the term mercantilism what are its salient features 500words answers
Answers
Mercantilism is the name given to the system of economic thought in which main focus is laid on the exports than on imports.
It us the main thinking of the believers of mercantilism that through trade and commerce the country should make its economy strong and should only import those things which can not be produced by it on its own.
The main features of Mercantilism are:
1) Making the country strong is the fundamental aim of the believers of mercantilism. They attach great importance to gold, silver and other precious metals or things.
2) This kind of economy focuses on the export of goods rather than their import. The believers are of the opinion that importing should only be for those things which cannot be produced by us on our own.
3) Mercantilism is a supporter of larger population because the larger the population will be the easier and cheap will be the labour.
4) Mercantilism doesn't pay any attention to the agricultural sector. It only believes in the commerce and industrial sector for the growth of a country.
Answer:
Explanation:
Mercantilism as it is known, or simply commercialism, is a system where the government increases its trade with other countries for selling purposes.
In other words, the business grows, and national income grows when the total imports are less than the exports and thus increasing gold shares of the country and becoming a rich country.