With the end of Middle Ages and beginning of Modern age, a new economic system began to circulate, different from the previous one (feudalism), in which people's wealth was measured by the land they owned: the bigger the land, the richer they were.
In the new system, called mercantilism, riches were said by trade and artisanal production, which began to move the economy at the time.
Mercantilism unleashed the absolutism, which aimed to achieve greater economic development. The greater the wealth of your realm, the greater the status and power of the time, as well as respect for all other realms.
Characteristics of mercantilism
Check out the main ones below. characteristics of mercantilism:
- Replacement of exchange of agricultural goods by exchange of coins, with this, it was necessary to produce more money in Europe;
- Metalism: accumulation of precious metals such as gold and silver;
- Encouraging the development of industries, as exporting manufactures yielded large profits;
- Protectionism Customs: government strategy to try to stop the flow of currencies to other countries. With that, several fees and interest were created;
- Colonial Pact: European colonies should trade only with the metropolises, applying the technique of selling dear and buying cheap;
- Quantity of taxes and market control determined by the king;
- Favorable trade balance: the country's effort to export more than to import. With that, more coins came in and the country's financial situation improved;
- Wealth of a country in Europe entirely linked to the amount of colonies it owned for exploration, which played an important role at the time.
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Commercial mercantilism stood out in the England; in France, industrial mercantilism was of greater interest, with luxury manufactures.
At Spain, the colonies had evidence in several segments, but metal mercantilism was the greatest of them, since precious metals were taken from these regions. Portugal stood out in all of them.
Mercantilism was fundamental for the expansion of capitalism, however, this had its disadvantages.
The countries aimed only at big profits, regardless of other conditions, so the wage earners lived in great economic oppression. They only had what was necessary, because according to the mercantilists, the lower classes who had money could get in the way with problems, such as the lack of manpower.
Read too:
- List of exercises on commercialism
- Christian Mercantilism in the Late Middle Ages
- Great Navigations
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