WORLD HISTORY

Detailed explanation-1: -Mercantilism was the dominant economic system from the 16th century to the 18th century. Mercantilism was based on the idea that a nation’s wealth and power were best served by increasing exports and reducing imports.

Detailed explanation-2: -This system dominated Western European economic thought and policies from the sixteenth to the late eighteenth centuries. The goal of these policies was, supposedly, to achieve a “favorable” balance of trade that would bring gold and silver into the country and also to maintain domestic employment.

Detailed explanation-3: -Mercantilism developed as the primary economic model in New France (1534–1763). This model attempted to export as much wealth as possible out of Canada back to Europe for the least amount of investment. Because of this economic model, New France developed slowly compared with other European colonies in the Americas.

Detailed explanation-4: -The British began regulating colonial trade to maximize profits under the mercantilist system in the 1660s. The King forbade direct exportations to rival markets. For example, tobacco from Jamestown had to be shipped to England first, where it could be taxed, before it could be sent on and sold elsewhere.

Detailed explanation-5: -Principles of Mercantilism The accumulation of gold and silver creates wealth. There is a fixed amount of wealth in the world. A positive trade balance must be maintained. A large population is needed for labor in fields and mills, customers for markets, and soldiers for the military.