Economic Theory And Practice That Promoted Governmental Regulations Of A Nation 's Economy

1234 Words 5 Pages
Economics Up to 1775*
Mercantilism is an economic theory and practice that promoted governmental regulations of a nation’s economy. Mercantilism is the economic policy aimed at accumulating monetary reserves through a positive balance of trade, particularly of finished goods. High tariffs, mainly on manufactured goods are a universal feature of mercantilist policy. There was much emphasis on money was succeeded by industrial policy. Mercantilism encouraged many European wars as well fueling European expansion and imperialism. The idea of mercantilism was initially to protect the markets while helping maintain the agriculture and those who depended on it.
A joint-stock company is an association of individuals in a business with transferable shares of stock. It was much like a corporation except that the stockholders are liable for debts of the business was when the stock was sold to investors who provided capital and had limited risk.
The growth of agriculture such as tobacco, rice, and indigo created a tremendous need in labor in Southern English America. Since there was no modern time machinery the only other solution was human sweat and blood. While there were slaves in the English colonies, indentured servitude was a choice made by many planters. The system would also benefit each indentured servant each servant would be able to go across the Atlantic, fully paid by their masters. Becoming a servant came with contracts that stipulated the length of service, usually five…

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