Mercantilism as a Part of Economics - Essay Example

All the countries that practiced mercantilism had one economic motivation which was the consolidation of power centers in that region. Spain was not left behind, and it made sure all its colonies in the Caribbean were rigidly controlled to protect the commerce and industry of her empire. First, they barred foreign ships from accessing her colonial ports in the Caribbean. Second, she designed the colonies to economically complement to Spain and forbade certain colonies to manufacture so as to leave their market open for imports.

Finally, she channeled all colonial trade through one port so that she got all the benefits (Magnusson, 1996).The main positive aspect of mercantilism was the creation of wealth for the merchants and rulers of the countries involved. Another positive aspect is that this system provided the greatest inspiration for the growth of economics as a scientific division. The local inhabitants of these colonies were the ones who bore most of the negative aspects of mercantilism.

First, the locals were exploited to the core whereby they either became slaves or bonded laborers. Second, the economic status of these colonies weakened a lot, and the local people were left highly demoralized (Magnusson, 1996).