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Mercantilism |
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As monetary systems became established, nations began to
trade goods on the basis of monetary value
to be gained in the domestic markets. The mercantilists were in favour of a nation state and
state intervention. They were against free trade and were in favour of the
regulation of international trade. In essence the mercantilists did not believe
in a free market. The mercantilists favoured protection for domestic
manufacturing, preventing similar products from other nations to be sold. They
were in favour of having monopolies that restricted competition. The
mercantilist perception of world trade was one where the government granted
monopoly privilege to a business in the form of a patent (giving exclusive
trading rights) for example the East India Company of the early 1700’s. The mercantilists believed in a strong central government would promote their ideas. The mercantilists recognised the growing power of the national economy and were in favour of the state in economic activity to maximise wealth. ESSENTIAL FEATURES OF MERCANTILISM
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