Merchantilism

By Josh and Matt

Definition

Merchantilism is a national economic policy that was made in order to accumulate money through positive trade. (Making money off said trade) Mirchantilism is what spurred colonial expantion and many wars.

Detail

  • Cause - the competitive market in Western Europe laid the foundation for Merchantalisim. With so many counties close to each other, Europe quickly became a place of war and economic struggle.
  • Characteristics- The main policies of Merchanilism were building colonies overseas, forbidding those colonies to trade with other countries, staple rights (the act of making a ship unload all it's cargo and sell it for three days then leave with the unsold cargo.), and extremely high tariffs. It was an idea that supported circulation of money and discouragement of hoarding goods.
  • Significance- without merchantilism the colonization of The Americas would have taken a much longer time. Also wars that weakened nations leaving room for revolution.