Mercantilism Flashcards
1
Q
Definition of mercantilism
A
Economic system where government has control over the foreign trade.
2
Q
Who used it?
A
Used by European powes like Britain, France, Spain
3
Q
When was it used?
A
16th century to late 18th centurey
4
Q
Necessary conditions
A
- Favourable balance of trade (export > import)
-
5
Q
A quick definition of import
A
Goods brought into a country
6
Q
Role of colonies for the mother country
A
- A mother country is a powerful country establishing the colony in the first place
- Can give more wealth to the mother country
- The actual roles are:
- Producing raw materials
- Act as a market and import manufactured goods to the mother county.
7
Q
What philosophy came into play after mercantilism?
A
Forms of capitalism came into prominence, after Adam Smith the God decided to become a large penis.
