The benefits of mercantilism include increased employment, the development of new technologies and products, and positive cultural exchanges as mercantilist nations seek new markets and raw material sources, whereas the disadvantages of the system include increased conflict between nations, growth in trade protectionism and the development of trade monopolies. The Library of Economics and Liberty defines mercantilism as a form of nationalism aimed at building a wealthy and powerful state.Continue Reading
The philosophy is based on the belief that maximizing exports and minimizing imports is the best route to national prosperity. Mercantilism dominated the economic policies of many European countries from the period between the 16th century and the late 18th century. According to the Library of Economics and Liberty, the philosophy led to the reduction of barter trade as countries switched to bullion-based monetary systems. Mercantilism also sparked a huge increase in the volume and breadth of trade between countries, and it contributed to the growth of colonialism. A gradual decline in the contribution of agriculture to national wealth was another result of the policy. Mercantilism contributed to the development of full-time standing armies and navies because mercantilist nations scrambled to protect markets and sources of raw materials.
The philosophy is largely discredited. As explained by Wikipedia, its fall from grace can be traced to the rise in importance of capitalism, a philosophy championed by Adam Smith. He is considered by many as the father of modern economics.Learn more about Economics
According to What Is Economics, economic development occurs when policymakers work to improve the welfare of citizens; economic growth refers to a country's increase in output of products and services. Economic growth is considered by most economists to be a subcategory of economic development.Full Answer >
International trade lowers the cost of products through competitive advantages, but it can lead to harm for communities and nations. Workers in developed nations are sometimes replaced by counterpart in developing nations. Work conditions in developing nations can be exploitative.Full Answer >
The World Trade Organization ensures that countries that trade goods and services have a say in how trade is conducted on an international level, thereby promoting peaceful relations, stimulating global economic growth, lowering the cost of living for residents of many nations and creating challenges to governments that seek to gain an economic advantage through corrupt trade practices. The WTO generally encourages transparent government among its members.Full Answer >
Global trade patterns track ever-changing pathways in the exchange of capital, goods and services among nations. The decades leading up to 2014 saw the rise of regional trading blocs, reduced industry in many nations, the increased participation of former communist countries, and the rising stars of China and India.Full Answer >