homework help: I need help with my social studies homework and fast…if you know anything about mercantilism…let me know! - Help.com

I think mercantilism is an economic term. It has to do with colonies. A nation that is being colonized by a ruling nation gives the ruling nation a national resource or a commodity. For example, when England colonized New England, colonist shipped cotton to England. Once the ruling nation has the the natural resource it is made into a product which is sold back to the colonized nation. Once England recieved the cotton they would go on to use it in textiles. People from New England would have to buy their textiles from England. This means that England is basically selling the colonists’ product back to them.

Mercantilism is an economic theory that holds the prosperity of a nation dependent upon its supply of capital, and that the global volume of 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 balance of trade with other nations (exports minus imports). Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy; by encouraging exports and discouraging imports, especially through the use of tariffs. Mercantilism was the dominant school of thought throughout the early modern period (from the 16th to the 18th century). Domestically, this led to some of the first instances of significant government intervention and control over the economy, and it was during this period that much of the modern capitalist system was established. Internationally, mercantilism encouraged the many European wars of the period and fueled European imperialism. Belief in mercantilism began to fade in the late 18th century, as the arguments of Adam Smith and the other classical economists won out. Today, mercantilism (as a whole) is rejected by economists, though some elements are looked upon favourably by non-economists. I hope I helped.