Mercantilism

Mercantilism is the state ideology of trade relations with other states and the mainstream of economic relations in the 17th-18th centuries. This chapter presents the reasons for the emergence of mercantilism, the economic policy and the way of thinking that prevailed in Europe at that time.

The chapter describes the main propositions and beliefs of that ideology, guided by which states began to promote their country’s production and exports. Ideology was essentially based on the belief that possessing gold and other precious metals was the source and measure of power for the state or kingdom of the day. Heads of state then even pursued a policy restricting imports, especially of the luxury goods of the time. Today we think very differently; knowledge, human capital, values, attitudes, and skills are considered essential, but three hundred years ago, it was seen differently.

Ex. 1‑1 The spread of mercantilism in the 17-18 centuries among the colonial maritime states of Europe

Keywords: Netherlands, France, Spain, Portugal, United Kingdom

Ex. 1‑2 The mercantilist period in the context of other significant events

Keywords: Mercantilism, Columbus, Vasco de Gama, US declaration of independence, Anglo-Spanish War

Ex. 1‑3 The essence of mercantilism

Keywords: Imperialism, mercantilism, export, gold, import