Essay on Mercantilism And Its Impact On The European Economy

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Mercantilism is a system dominated by Western European economic thought and policies from the sixteenth to the late eighteenth centuries. Mercantilism is economic independence for the purpose of building a wealthy and powerful state. The goal is to achieve an advantageous balance of trade while also maintaining a domestic employment. The theory of mercantilism states that there is a certain amount of wealth in the world and that it is in a nation’s best interest to accumulate that wealth, and through that wealth, a nation is able to achieve power. An important economic progress for mercantilism was the establishment of colonies outside of Europe. This theory of mercantilism encouraged the development of an Atlantic economy that involved Europe, West Africa, and the Americas. People, goods, and money streamed around the Atlantic, facilitating the growth of colonies. At the same time, this system required a great amount of capital and especially human labor. British mercantilism manifested itself in the form of the triangular trade. These trade routes linked the American Colonies, West Indies, Africa, and England. Each port provided shippers with a payoff and a new cargo. New England rum was shipped to Africa and traded for slaves, which were brought to the West Indies and traded for sugar and molasses, which went back to New England. Other raw goods were shipped from the colonies to England, where they were swapped for a cargo of manufactured goods. So while the system of…

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