Question

Identify a local/global problem or a positive aspect in current societies that might be caused by an economic policy that is based on an economic concept that was originally identified by the Mercantilist School of Thought.

Your answer needs to provide at least two paragraphs.
The first paragraph discusses the local/global problem or a positive aspect in current societies.
The second paragraph explains how the concept that you identified is causing the problem or the positive aspect.

Answer all the questions in well developed paragraphs. The paragraphs should be at least five or six sentences long, and they should clearly include a topic sentence.

Answer 1

Mercantilist school of thought is about the idea of mercantilism. Mercantilism is an economic theory that advocates government regulation of international trade to generate wealth and strengthen national power. Merchants and the government work together to reduce the trade deficit and create a surplus. Mercantilism has many positive aspects and benefits in current societies.  It encourages the complete development of all natural resources and trade deficits for foreign nations. Cultural exchanges are encouraged to promote trade and also it naturally reduces unemployment rates.

Many economies today have a lot of waste that occurs because there is an emphasis on using foreign trade to fill in product or service gaps. Through mercantilism, there is a need to research and develop all possible resources to their greatest extent to support the local and mother nation economy. The goal of mercantilism is to build wealth, which means any opportunity to do so is encouraged. From a trading perspective, raw materials were a hot commodity for nations participating in mercantilism because they could be refined into manufactured goods and resold to foreign nations at a high price. It’s a perfect example of what it means to buy low and sell high. The rules of business have not really changed since the beginning of time. First and foremost, before any long-lasting relationship can be created, a relationship must be formed. Because the foundation of a system of mercantilism is to continue increasing business opportunities, many cultural exchanges are encouraged and these influences then enhance the standards of living that people experience.Because there is such an emphasis on developing local resources, jobs are created to make this happen. From the finding of resources to creating innovative new products from them to selling in new markets, people are needed at every stage to make this happen. Of course many of the jobs are based in the mother nation, but there are additional opportunities created in each colony as well.

Thank you.