Question

The Mercantilist and Physiocratic economic schools of thought are the earliest recognizable school of thought in human history.

a) Identify a similarity and a difference between those schools of thought.
Your answer needs to provide at least two paragraphs.
The first paragraph discusses the similarity between these schools of thought.
The second paragraph discusses the difference between these schools of thought.

b) Discuss the economic idea or thought that you have found the most interesting from any of these schools of thought or their thinkers. Explain your reasoning.

c) 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 Physiocrat 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

Mercantilism is the economic theory in the current societies which is based on an economic concept that was originally identified by the mercantilist school of thought. Mercantilism was an economic theory developed for trade activities which is based on the principle of trade that many nations tried to gather the largest possible share of finance by increasing their exports and by imposing duties or tariffs reduce the imports.

• The current societies are facing a lot of global and economic problems or challenges. The major problem is raising poverty and conflicts in the society. The fight against global poverty is for the global security of nations. Another problem faced is the global imbalances and a lot of competition in new era of globalization. This makes the economies weal and disturbs the living conditions of the people.

• The positive impacts of mercantilism on the society are:

1. It reduces the unemployment rates because this policy focuses on creating new jobs and opportunities for the people by finding new resources to develop new innovative products and services.

2. It also encourages the trade activities by supporting the culture exchange globally. Long-time relationships are formed between the traders of different countries and enhance the living standards of people by sharing the culture aspects.

3. By minimizing the wastage of the natural resources, this policy develops all possible resources to the greatest extent.

4. Improves the foreign trades by trading perspective and variety of raw materials and products are traded between foreign countries.