Mercantilism is a series of economic policies and practices that “sought to strengthen one state economically and politically, to the disadvantage of others” which involved the utilisation of the interventionist role of the state in the economy and foreign trade that when executed properly, greatly enhanced a ruler’s ability to wage war. Mercantilist policies maintain that a ruler’s goal is to increase the state wealth; state wealth which is equivalent to the stock of precious metal and is a direct measure of state power. However, many states did not have their own bullion mines and thus had to engage in favourable foreign trade to increase state-power. Lastly, Heckscher asserts that foreign trade is a zero-sum game and through that game states
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This was preferred over other foreign trade because the colonies were subject to English Mercantilist regulation making them easier to control. British economic growth depended upon increased and balanced external trade with exports exceeding imports thus increasing precious metal supplies. British Mercantilists “prefer colonial dependencies to independent foreign countries in seeking sources of foreign supply. If the state could not free itself completely from trade with foreign nations, it sought to control that trade in its own interest as much as possible” . Adam Smith asserts that the thirteen colonies greatly aided British capital accumulation in the 150 years they were subject to the regulations of English Mercantilism. Smith argues that real wealth is a product of the exchangeable value from land and labour which, during the 17th – 19th centuries was increasing. Britain used the American capital of land and labour and their own manufacturing capabilities to increase state wealth. Therefore, “The state of our North American colonies, and of the trade which they carried on with Great Britain … may serve as a proof that this is by no means an impossible supposition” . The growth of colonial land and labour allowed for American large scale farming and low cost raw material exportation. England manufactured raw materials into finished goods selling them for profit aiding the ability to wage war, by accumulating capital and national
This was preferred over other foreign trade because the colonies were subject to English Mercantilist regulation making them easier to control. British economic growth depended upon increased and balanced external trade with exports exceeding imports thus increasing precious metal supplies. British Mercantilists “prefer colonial dependencies to independent foreign countries in seeking sources of foreign supply. If the state could not free itself completely from trade with foreign nations, it sought to control that trade in its own interest as much as possible” . Adam Smith asserts that the thirteen colonies greatly aided British capital accumulation in the 150 years they were subject to the regulations of English Mercantilism. Smith argues that real wealth is a product of the exchangeable value from land and labour which, during the 17th – 19th centuries was increasing. Britain used the American capital of land and labour and their own manufacturing capabilities to increase state wealth. Therefore, “The state of our North American colonies, and of the trade which they carried on with Great Britain … may serve as a proof that this is by no means an impossible supposition” . The growth of colonial land and labour allowed for American large scale farming and low cost raw material exportation. England manufactured raw materials into finished goods selling them for profit aiding the ability to wage war, by accumulating capital and national