Essays on Mercantilism

Capitalism has come a long road before becoming the dominant social order on the planet. Adam Smith was one of the first economists to fully describe the benefits that free market capitalism can bring. Moreover, he was the first to systematically analyze the main economic categories such as wages, labor, profit, rent, population, demand, and supply. His work Wealth of Nations was groundbreaking, and he is considered one of the fathers of capitalism not without a reason. In this work, I will show that Adam Smith succeeds in his criticism of mercantilism and governmental market regulations and proves that ...

At the termination of the American Revolution, Alexander Hamilton firmly believed in a strong centralized government. He had worked as a major in the American army during this era of revolution, where he noted detrimental consequences of a weak federal authority. However, the majority of the Americans were skeptical and doubted the increased centralization of government due to various reasons. Hamilton’s structure did not consider democracy; instead, it held that the United States’ government should be modeled on the British method of governance where voters could not be given any power to take part in the decision-making process ...

Q.1 What are the main assumptions and concepts associated with liberalism? Main assumptions and concepts associated with mercantilism? What are main characteristics of components of the Bretton Woods system? Liberalism mainly associates with freedom of choice and action for all rational actors in all spheres of activity. Economically, liberalism has traditionally stood for a free market with minimum Government intervention or interference, minimum barriers to entry and exit of markets, and protection of free and open competition. Mercantilism was traditionally the opposite end of the spectrum from liberalism and was opposed to liberalism influenced economics. It stood for heavy ...

An economic system is a socially established institution that coordinates human activities in order to produce, distribute and consume goods and services. Goods comprise the commodities that are extracted from the earth and processed such as food, clothing and natural gas among others. Services comprise activities performed for others that result in the tangible products such as transportation, medical care and education among others. Therefore, three ongoing revolutions have shaped the global economic system. These revolutions include agricultural, industrial and information revolutions. These revolutions contain institutions that make them up, are constantly evolving, and will continue to evolve.

An ...

Introduction

Adam Smith is one of the most revered economists that influenced the development of modern economic thought. Adam Smith is famous for coining the term “the invisible hand of the market” which is the perfect metaphor for market movements driven by supply and demand. However what makes Adam Smith’s thinking unique is how it ties is yet contradicts the teachings of great thinkers ahead of him such Aristotle and Saint Thomas Aquinas on their ideas of wealth accumulation and self-motivation. He also thought similarly but contrasted with his contemporaries such as Bernard Mandeville.

Adam Smith was a Scottish ...

In the midst of a globalized world, it becomes vital to appreciate the varying types of economies carried by different nations and cultures. When examining the effects and attributes of capitalism as a whole, it is necessary to understand that not all capitalisms are created equal. Two basic types of capitalism exist: liberal market economies (LME) and coordinated market economies (CME) (Hall and Soskice 2001, p. 8). However, within these two major groupings there are many different types of capitalism, which all have their differences that make their particular brand of society unique. There are several major forms of capitalism: mercantilism, ...

When examining the effects and attributes of capitalism as a whole, it is necessary to understand that not all capitalism is created equal. There are many different types of capitalism, which all have their differences that make their particular brand of society unique. There are several major forms of capitalism: mercantilism, free-market capitalism, social market economy, state capitalism, and corporate capitalism, all working toward the idea that societies run on the exchange of goods and services. Mercantilism is one of the earliest forms of capitalism, and is mostly identified by the give and take of trade between nations (Aizenman ...

Mercantilism was referred to as the guiding doctrine, which, was behind the attempts of regimes of the early modern Atlantic world that would organize their economic existence. Mercantilism’s aim was to structure the state nation’s financial foundation. Nationalism held the promise of improving political stability and creating a better life for all; this was a substantial improvement over the chaos experienced in the earlier era. Mercantilist policies, therefore, were meant to become the economic means to a greater social and political end. Similar to other economic belief systems such as capitalism and socialism, mercantilism had a few faithful, and many ...

Invisible hand concept

A great economist, philosopher, scholar and researcher Adam Smith passed this world a few centuries ago and left us quite controversial matters to be discussed and clarified. Famous and prominent scholars tend to leave us certain mysteries for this world to wonder.

In his book “An Inquiry into the Nature and Causes of the Wealth of Nations”, Adam Smith asserts:

“Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed, and not that of the society, which he has in view. But the study of his own advantage naturally, or rather necessarily, leads him to prefer that employment which is most advantageous to ...

Over the past centuries, trade has improved right from barter trade to other forms such as those experienced in the modern world in the present day and age. According to Gywnne, there has been a gradual and uneven emergence of more liberalized trading system in the world over the latter half of the twentieth century. Some argue that during this era, trade was fair and freer across nations compared to the present age. In some systems, some government’s control the economy and anything that deals with trade in that country. In some other countries, there are specific regulations that ...

Mercantilism is an economic system in which a country exploits its colonies. The country’s aim is to control natural resources and harvest the fruits of the colonies’ labors; it basically maximizes exports and minimizes imports. The successful adoption of this economic system can be attributed to Adam Smith and John Locke and those aristocrats who recognized the benefits it provided. Mercantilism differed from other economic systems like capitalism and socialism because it focused on wealth for those who had things to sell. Capitalism is an economic system that is based on means of production and distribution owned by corporations ...

In human history, few pandemics can be compared to the Back Death. This pandemic took place between the years of 1346 and 1353 in Europe, killing between 75 and 200 million people. To date, there is no theory about the causal agents of the pandemic. However, research indicates that Yersinia pestis bacterium was the responsible pathogen for such mass deaths, causing many forms of plague. The origin of the Black Death is believed to be Central Asia’s arid plains, travelling along the Silk Road to reach Crimea by 1343. It was then carried by oriental rat fleas ...

Political Science

Introduction How does the commercial peace theory, in the long run, attempt to avoid wars and not create them? In order to understand, or answer this question, scholarly articles written by McMillan’s (1997) Interdependence and Conflict; Buzan’s (1984) Economic Structure and International Security; Lynn’s (2005/6) War, Trade and Utopia; and Rowe’s (2005) The Tragedy of liberalism How globalization Cause the First World War are considered. The world witnessed two major World Wars, during, and after which, a number of countries came together to form unions and blocs. The Soviet Bloc was an amalgamation of ...

Settling in North America

The colonization of North America by the British Empire following the voyages led by Christopher Columbus during the late 15th century has notable economic and political characteristics. The British Empire saw North America as a resource-rich continent that is highly instrumental in expanding their economic activities. Given the initial failures to establish colonies and the rivalling Dutch, French and Spanish imperial forces in North America, the British Empire turned to joint stock companies for establishing settlements. Key to the operation of joint stock companies is the independent leadership exerted by the Proprietary Governors and the practice of mercantilism. Both the ...

Introduction

This study aims to explore how the manifestation of mercantilism has provided support to globalization. There is an understanding that financial developments have helped sustain globalization amidst internal hindrances mostly involving the emergence of monopolies and external interferences in the form of market globalization. At the same time, however, financial developments became a sustainer of globalization due to its depreciative effects to excess capital. It is therefore noteworthy to investigate globalization, in light of the events that triggered the global financial crisis of 2008 – something that this study seeks to discuss (Blankenburg & Palma, 2009; Boyer, 2000, pp. 111-145; Helleiner, 1995, ...

Political Science

Every action has an equal and opposite reaction. This fundamental law of physics also sees an application when it comes to the U.S economic policy and it’s affect on immigration. The United States’ economic policies both on the nationally and globally have throughout history shaped the modern day immigration scene. From the American model of neo-mercantilist colonization of Latin American countries such as Cuba and Puerto Rico, creating more open markets through military intervention in Nicaragua, Guatemala, and El Salvador, to creating a domestic demand for cheap labor in the agricultural, construction and domestic industries, the U.S. economic policies ...

Mercantilism was an economic system which existed between the times 1492 to 1700. France, England, Spain and Portugal were increasingly being unified. Power was much centralized, thus the governments of these nations has to find a way to inflate their power. The mercantilists perceived that national power implied wealth, which was understood as acquiring silver and wealth. The mercantilists had the opinion that government must control the wealth of the country and should invest it in public projects or works. Thus, it is a nationalist type of early capitalism characterized by the interlacing of the business interest of the nation to ...

When the Thirteen Colonies established themselves, it became incredibly difficult to compete with their mother country, Great Britain, due to the practice of mercantilism that had kept the Great British Empire so powerful throughout its history. Mercantilism, as a concept, dictated that economic strength comes from exporting more than you import (Schultz, 2014, p. 110). To that end, Great Britain established many different laws in the colonies that they ruled which greatly favored Britain in their dealings. In essence, America would export raw goods to Britain, which turned those materials into goods that they could then export back to America ...

When the Thirteen Colonies established themselves, it became incredibly difficult to compete with their mother country, Great Britain, due to the practice of mercantilism that had kept the Great British Empire so powerful throughout its history. Mercantilism, as a concept, dictated that economic strength comes from exporting more than you import. To that end, Great Britain established many different laws in the colonies that they ruled which greatly favored Britain in their dealings. In essence, America would export raw goods to Britain, which turned those materials into goods that they could then export back to America and to other countries. ...

Introduction

Economics studies the rationality of human beings. They maximize on deriving the possible benefits from a resource constraint. Economics covers a vast area. The broad meaning of economics gives rise to sub branches of economics. It may either be international economics or domestic. International economics involves both international trade and finance. It explains the patterns of transactions and relations of citizens from different countries and their consequences. International trade section of international economics studies the flows of goods and services from the international suppliers and international buyers. International finance focus on the effects of the exchange rates and capital flows over ...

Is the Das Adam Smith Problem Relevant Today? An Assessment of the Modern Economic Conception of Agency for Understanding Human Conduct in General and Moral Conduct In Particular

An Assessment of the Modern Economic Conception of Agency for Understanding Human Conduct in General and Moral Conduct In Particular Adam Smith Adam Smith was a Scottish political economist, born in June 5, 1723. He is one of the most renowned political economist, lecturer and essayist. Adam Smith is known for his contributions to the field of politics, economy and moral philosophy, having written two of the most revered books ...

Countries trade with one another, especially to obtain goods that it does not produce, or even to offload any excess produce. There have been advanced several theories that that support the theory of international trade. The most common ones include Mercantilism, by William Petty, Thomas Mun and Antoine de Montchrétien model, the theory of comparative advantage by (David Ricardo model) and also the theory of absolute advantage by Adam smith. Mercantilism was the oldest theory that was fronted in relation to international trade, in the 1600’s ( Jones & Ronald,1987). This paper attempts to explain the ...

Introduction

In ancient Chinese and Greek, Mercantilist/ later pre-classical approaches to political economy had different characteristics compared to today’s economic structures. There were different ways of handling things at that time. For example, there were theoretical approaches like physiocrats and mercantilists. The aspects of the economy at that time were very different from those in place today. The modes of interest rate, taxation and value of labor were not as elaborate as they are in today’s ideal economy. Confucius economies were characterized by the monarch authorities oppressing the public. They charged very high taxes on the public, the ...

During the existence of the Napoleon's French Empire there emerged a couple of revolutionary war against the regime. These wars were perpetuated by organized coalitions that had the common ain of disbanding this French Empire. One of the reasons as to why these series of opposition wars became significant is because European nations at the time had began to develop their weapons using modern technology therefore resulting in massive and large scale destruction of the affected areas. After a long struggle between the Napoleon Empire and the opposing coalitions, there was growth of a nationalistic feeling between nations as they felt the ...

Q1. Arguably, American Revolution brought to an end the two century British rule. This revolution led to the creation of modern United States of America. As a matter of fact, the era was disturbing and exhilarating; it was a dislocation for others while to some it was a time process meant to bring changes. Certainly, in the stir of the revolution came various events such as ratification and drafting of the constitution .Another event was the rebellion of slaves due to contrast between proclamation of liberty and slavery. The entire revolution process led to social, economic, and political changes. The changes ...