Q. 1 Define the term “Mercantilism”. What are its salient features? Ans : - Mercantilism is an economic theory, thought to be a form of economic nationalism, that holds that the prosperity of a nation is dependent upon its supply of capital, and that the global volume of international trade is "unchangeable". Economic assets (or capital) are represented by bullion (gold, silver, and trade value) held by the state, which is best increased through a positive and healthy balance of trade with other nations (exports minus imports). The theory assumes that wealth and monetary assets are identical. Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy by encouraging exports and discouraging imports, notably through the use of subsidies and tariffs respectively. The theory dominated Western European economic policies from the 16th to the late-18th century. Mercantilism was the dominant school of thought in Europe throughout the late Renaissance and early modern period (from the 15th-18th century). Mercantilism encouraged the many intra-European wars of the period and arguably fueled European expansion and imperialism — both in Europe and throughout the rest of the world — until the 19th century or early 20th century. Arguments have been made[by whom?] for the historical promotion of mercantilism in Europe since recorded history, with authors noting the trade policies of Athens and its Delian League specifically mention[clarification needed] control of value of trade in bullion as necessary for the promotion of the Greek polis. Additionally, the noted competition of medieval monarchs for control of the market town trade and of the spice trade, as well as the copious documentation of Venice, Genoa, and Pisa regarding control of the Mediterranean trade of bullion clearly points to an early understanding of mercantilistic principles. However, as a codified school, mercantilism's real birth is marked by the Empiricism of the Renaissance, which first began to qualify large-scale trade accurately. Most of the European economists who wrote between 1500 and 1750 are today generally considered mercantilists; this term was initially used solely by critics, such as Mirabeau and Smith, but was quickly adopted by historians. Originally the standard English term was "mercantile system". The word "mercantilism" was introduced into English from German in the early 19th century. Salient features of Mercantilsim.
The Austrian lawyer and scholar Philipp Wilhelm von Hornick, in his Austria Over All, If She Only Will of 1684, detailed a nine-point program of what he deemed effective national economy, which sums up the tenets of mercantilism comprehensively: * That every inch of a country's soil be utilized for agriculture, mining or manufacturing. * That all raw materials found in a country be used in domestic manufacture, since finished goods have a higher value than raw materials. * That a large, working population be encouraged.
* That all export of gold and silver be prohibited and all domestic money be kept in circulation. * That all imports of foreign goods be discouraged as much as possible. * That where certain imports are indispensable they be obtained at first hand, in exchange for other domestic goods instead of gold and silver. * That as much as possible, imports be confined to raw materials that can be finished [in the home country]. * That opportunities be constantly sought for selling a country's surplus manufactures to foreigners, so far as necessary, for gold and silver. * That no importation be allowed if such goods are sufficiently and suitably supplied at home. How Far was the French Monarchy responsible for the French Revolution of 1789? Ans: - Feudalism and Unfair Taxation
No one factor was directly responsible for the French Revolution. Years of feudal oppression and fiscal mismanagement contributed to a French society that...
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