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Summary of the article - Essay Example

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The article defines mercantilism as a system where individuals, including governments were dominated with the idea of acquiring species…
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Summary of the article

Download file to see previous pages... According to Adam Smith, as the article explains, it was the obligation of a nation to protect species outflow (LaHaye, 1986). In this perspective, national policies were geared toward the protection of the acquired wealth by encouraging the importation of species and discouraging export. The economic reason for mercantilism was to acquire much power by large competitive nation states such as Europe (LaHaye, 1986). The article points out that, these nations did not have species, but acquired them from colonies through colonization of countries endowed with this species and through international trade.
In the mercantilism period, the hustle for economic power resulted in military conflict amid nation states. Laura appreciates that countries minted their currencies in order to finance their military to command a considerable territorial expansion. National policies in mercantilism period defined the relationship between government and mercantile classes. The article outline that mercantile classes (merchants and producers) provided levies and taxes that were used to finance the armies of the nation states and the government was responsible for formulating policies that protect mercantile from undue foreign competition (LaHaye, 1986). Governments of nation-states developed public policies that took different forms. In the home country, the article posits that governments promoted local monopoly over colonial markets, finance new industries, and offer tax exemption and tax holiday to the upcoming industries. The trade policy was coined in order to assist infant domestic industries by imposition of quotas, tariffs and prohibiting the importation of goods that compete with local brands (LaHaye, 1986).
Marine transport was an imperative mean of transport for shipping gold and silver from colonies to colonizing countries. For instance, the article identifies that the shipment of gold was conducted to facilitate ...Download file to see next pagesRead More
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