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Mercantilism and liberalism and Israeli-Palestinian conflict - Essay Example

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This is one of the economic theories that were dominant in the early and the late 18th century in the European economies (Goldstein, Joshua & Jon, 5). The concept of this theory was based on the purpose of facilitating governmental efforts towards regulating state power as well…
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Mercantilism and liberalism and Israeli-Palestinian conflict

Download file to see previous pages... On the other hand, the basic tenet of liberalism as an economic school of thought is based on the invisible capacities offered by the economy. In this regard, the concept of liberalism creates a platform for fair and equal market practices, or with little government intervention (Goldstein, Joshua & Jon, 8). In a market environment guided by liberalism as a school of thought, the natural laws of demand and supply play a major role in regulating market activities and are believed to work effectively as compared to government implemented policies (Goldstein, Joshua & Jon, 8).
According to Goldstein, Joshua & Jon 2006, one major similarity exists between mercantilism and liberalism; in these two schools of thought, the market seems as the driving force for an economy that intends to achieve a high level of development. In this regard, both theories provide unique ideologies that can be used to regulate supply and demand activities in the market as a core of economic development.
According to the mercantilist ideologies, economies or states and markets have a high sense of relationship; this is because states are usually considered producers of resources and they assist markets in the process of remaining prosperous (Goldstein, Joshua & Jon, 14). However, in the case that a state-to-state relationship or interaction has to occur; there must be certain anticipated gains. These gains can be achieved through war. In this case, there must always be a winner and a loser, thus this ideology is based on a zero-sum gain (Goldstein, Joshua & Jon, 14).
In relation to Liberalism theory, economic development processes are composed of exclusive players, basically two categories of players: The first category is made of states that positively interact with each other and the second category is made of the markets (Goldstein, Joshua & Jon, 14). Liberalism theorists believe that states relate with each other owing to the fact that they believe in ...Download file to see next pagesRead More
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