Question

what is merchantalism? How did it impact our indian farmers?​

Answer 1

Answer:

Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes imperialism, tariffs and subsidies on traded goods to achieve that goal. The policy aims to reduce a possible current account deficit or reach a current account surplus, and it includes measures aimed at accumulating monetary reserves by a positive balance of trade, especially of finished goods. Historically, such policies frequently led to war and motivated colonial expansion.Mercantilist theory varies in sophistication from one writer to another and has evolved over time.

Mercantilism was the economic version of warfare using economics as a tool for warfare by other means backed up by the state apparatus and was well suited to an era of military warfare.[36] Since the level of world trade was viewed as fixed, it followed that the only way to increase a nation's trade was to take it from another. A number of wars, most notably the Anglo-Dutch Wars and the Franco-Dutch Wars, can be linked directly to mercantilist theories. Most wars had other causes but they reinforced mercantilism by clearly defining the enemy, and justified damage to the enemy's economy.

Mercantilism fueled the imperialism of this era, as many nations expended significant effort to conquer new colonies that would be sources of gold (as in Mexico) or sugar (as in the West Indies), as well as becoming exclusive markets. European power spread around the globe, often under the aegis of companies with government-guaranteed monopolies in certain defined geographical regions, such as the Dutch East India Company or the Hudson's Bay Company (operating in present-day Canada).

With the establishment of overseas colonies by European powers early in the 17th century, mercantile theory gained a new and wider significance, in which its aim and ideal became both national and imperialistic.[need quotation to verify]

The connection between imperialism and mercantilism has been explored by economist and sociologist Giovanni Arrighi, who analyzed mercantilism as having three components: "settler colonialism, capitalist slavery, and economic nationalism," and further noted that slavery was "partly a condition and partly a result of the success of settler colonialism.

In France, the triangular trade method was integral in the continuation of mercantilism throughout the 17th and 18th centuries.[39] In order to maximize exports and minimize imports, France worked on a strict Atlantic route: France, to Africa, to the Americas and then back to France.[38] By bringing African slaves to labor in the New World, their labor value increased, and France capitalized upon the market resources produced by slave labor.

Mercantilism as a weapon has continued to be used by nations through the 21st century by way of modern tariffs as it puts smaller economies in a position to conform to the larger economies goals or risk economic ruin due to an imbalance in trade. Trade wars are often dependent on such tariffs and restrictions hurting the opposing economy.

Answer 2

Mercantalism

Explanation:

• Mercantalism is an economic policy designed to maximise export and minimize imports,
• It was based on the idea that nations wealth and power were best served by maximizing exports and so involved increasing trade.
• It had a severe impact on Indian farmers-
• It led to the creation of monopolistic trading companies, such as East India Company.
• It mainly focussed on exports rather than import of products which ultimately lead to the inflation, which was a burden on farmers.