Capitalism and Mercantilism

Capitalism and Mercantilism - Shelby Kennard Assignment...

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Shelby Kennard Assignment Three Feb. 5, 2009 The chapter and the notes discuss capitalism and mercantilism. Explain the difference between the two types of economic activity. Then explain why you think capitalism became the dominate form of economic activity. You should be able to discuss this in no less than two pages. (Due Thursday, February 5, 2009). 10 points Mercantilism is defined by the accumulation of goods in order to distribute and make a profit. Goods are bought or taken at one location for a certain price and transported to another location to be sold at a higher price. Thus the old adage, buy low and sell high. This economic practice was extensively used in Europe between the 16 th and 18 th centuries. Mercantilism’s premise was that national wealth and power were best served by increasing exports and collecting wealth (gold and silver) in return, to export more than you import. This in turn would allow a nation to sustain and grow its wealth. As the best means of acquiring wealth (gold), foreign trade was favored above domestic
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Capitalism and Mercantilism - Shelby Kennard Assignment...

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