The European Policy of Mercantilism

Paper Summary:

The paper relates that the doctrine of mercantilism is an economic theory that warns a country not to buy more than it sells. The paper first explains the implications of this theory and looks at the history of the doctrine in England. The paper then discusses how British mercantilist policies played a major part in the country's colonization in the New World, eventually leading up to the American Revolutionary War. Additionally, the paper explains how mercantilism is a competitive theory and why it was the most significant economic theory in European history.

Outline:
What this Economic Theory Does
Mercantilism as Europe's Dominant Economic Theory
British Mercantilism and the Colonization of America
Mercantilism and Territorial Expansion
Mercantilism as a Competitive Theory

From the Paper:

"The doctrine of mercantilism was the most popularly accepted policy in Europe from the 16th through the 18th centuries. This economic theory was based on the well being of the nations concerned, and that was maximized with a steady and heavy supply of capital, which is fundamentally acquired by the services one country provides for another. The theory of mercantilism allows that exports are more valuable to a nation than imports, as exports produce pure capital from the selling of goods, and imports request capital in exchange for goods from another country. This doctrine is concerned with trade, and it virtually says that the economy of a given country will be better if they are able to sell more than what they buy."

Sample of Sources Used:

• Craven, Wesley Frank, The Colonies in Transition, 1968
• Magnusson, Lars G. (2003). "Mercantilism". in Biddle, Jeff E.; Davis, Jon B.; Samuels, Warren J.. A Companion to the History of Economic Thought. Malden, MA: Blackwell Publishing
• October 1651: An Act for increase of Shipping, and Encouragement of the Navigation of this Nation.', Acts and Ordinances of the Interregnum, 1642-1660 (1911), pp. 559-62. http://www.british-history.ac.uk/report.aspx?compid=56457&strquery=559 Date Accessed: 20 April 2009.
• Vaggi, Gianni; Groenewegen, Peter (2003). A Concise History of Economic Thought: From Mercantilism to Monetarism. New York: Palgrave Macmillan.
• Wilson, Charles (1963) [1958]. Mercantilism. London: Routledge and Kegan Paul.

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