Mercantilism intro

Page 3: Understanding Mercantilism

• Definition: Mercantilism is an economic theory which views money as the source of power.

• Concepts:

  • An IMPORT refers to goods brought into a country.

  • An EXPORT is the sale of goods to other countries.

Page 4: Key Features of Mercantilism

• Export more than Import:

  • Countries aimed to sell more goods (exports) than they purchased (imports).

  • This creates a trade surplus, contributing to the accumulation of wealth.

• Colonial Expansion:

  • European powers established colonies to:

    • Access valuable resources.

    • Create new markets for goods.

    • Strengthen economic power.

• Accumulation of Precious Metals:

  • The possession of gold and silver indicated a nation’s economic strength.

  • Policies were aimed at increasing stocks of these metals.