Mercantilism

Mercantilism

Mercantilism and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Mercantilism: A once-prominent economic philosophy that equated national wealth and prowess with the accumulation of gold and other international monetary assets, and hence with running a persistent trade surplus. The mercantilist viewpoint has been discredited by modem economics, which has shown that national economic security and well-being are not necessarily related one way or another with trade surpluses or deficits (see more information in the entry about trade balance). Nonetheless, mercantilist ideas continue to exert a powerful political hold in many countries, leading to demands for policies –such as tariff protection for domestic industries as well as export subsidies –designed to foster trade surpluses as keys to national economic strength. Since all countries cannot run .trade surpluses simultaneously, widespread pursuit of mercantilist policies tends to produce an unstable and conflict-ridden international trading system.

Mercantilism

This section provides an overview of mercantilism within the legal context of Historical Perspective in international economic law.

Resources

Further Reading

  • Craig VanGrasstek, “Mercantilism,” Elgar Encyclopedia of International Economic Law, Cheltenham Glos (United Kingdom), Northampton, MA (United States)

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