What was the policy of mercantilism quizlet?

Mercantilism is a system based on the benefits of profitable trading. Countries made trade policies that favored money going from the colonies to the mother country. How did goods move in Mercantilism? Mercantilism moved goods which were abundant in one location to another place where the goods were scarce.

What is the mercantilism policy?

Mercantilism is an economic practice by which governments used their economies to augment state power at the expense of other countries. Governments sought to ensure that exports exceeded imports and to accumulate wealth in the form of bullion (mostly gold and silver).

What are the 4 rules of mercantilism?

The underlying principles of mercantilism included (1) the belief that the amount of wealth in the world was relatively static; (2) the belief that a country’s wealth could best be judged by the amount of precious metals or bullion it possessed; (3) the need to encourage exports over imports as a means for obtaining a …

What is the main goal of mercantilism quizlet?

The principle goal of mercantilism was to increase a nations power by increasing its wealth and improving its balance of trade. Mercantilist countries expected their colonies to provide them with raw materials and also to become consumers of manufactured goods.

What is the main argument of mercantilism?

Mercantilism was an economic system of trade that spanned from the 16th century to the 18th century. Mercantilism was based on the idea that a nation’s wealth and power were best served by increasing exports and so involved increasing trade.

What was the main goal of mercantilism?

The mercantilist goal was to maximize a nation’s export surplus—the balance of trade, which was equated with the future prosperity and power of the realm—and the means were cheap production inputs, that is, cheap raw materials (for which colonies proved useful) and cheap, and therefore poor, labor at home.

What are the main features of mercantilism?

Characteristics of Mercantilism

• Accumulation of Gold. Gold was associated with wealth and power.
• Belief that Wealth is Static. At the heart of mercantilism was the belief that wealth was static.
• Large Population.
• Positive Balance of Trade.
• Reliance on Colonies.
• State Monopolies.
• Trade Barriers.

What are the benefits of mercantilism?

Pros of Mercantilism

• Encourages the development of natural resources.
• It enhances trade deficits for foreign countries.
• Lower unemployment rates.
• Industrial and national growth.
• Culture and international relations.
• Made the nation more powerful.
• Created a market for finished goods.