Question

What is a Mercantilist?​

Answer 1

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Question :-

What is a Mercantilist?

Answer :-

Mercantilism is an economic theory that advocates government regulation of international trade to generate wealth and strengthen national power. Merchants and the government work together to reduce the trade deficit and create a surplus. Mercantilism—a form of economic nationalism—funds corporate, military, and national growth.1 It advocates trade policies that protect domestic industries.

Answer 2

→ Mercantilism is an economic theory where the government seeks to regulate the economy and trade in order to promote domestic industry – often at the expense of other countries. Mercantilism is associated with policies which restrict imports, increase stocks of gold and protect domestic industries.

●Examples of mercantilism:-

• England Navigation Act of 1651 prohibited foreign vessels engaging in coastal trade.
• All colonial exports to Europe had to pass through England first and then be re-exported to Europe.
• Under the British Empire, India was restricted in buying from domestic industries and were forced to import salt from the UK. Protests against this salt tax led to the ‘Salt tax revolt’ led by Gandhi.
• In seventeenth-century France, the state promoted a controlled economy with strict regulations about the economy and labour markets
• Rise of protectionist policies following the great depression; countries sought to reduce imports and also reduce the value of the currency by leaving the gold standard.
• Some have accused China of mercantilism due to industrial policies which have led to an oversupply of industrial production – combined with a policy of undervaluing the currency.