Question

what are the structures and practices created by mercantilism that still exist today?

Answer 1

Mercantilism is an economic philosophy in which the government attempts to control the economy and trade to support domestic production – often on the detriment of other countries. Mercantilism is tied to policies that restrict imports, increase gold stocks and protect domestic industries.Mercantilism stands in contrast to free trade theory which suggests that countries can better boost economic well-being through tariff cuts and fair free trade.

Import limits-barriers to tariffs , quotas or non-tariff barriers. Foreign-currency reserves accumulated, plus gold and silver deposits. (also known as bullionism) In the sixteenth / seventeenth century, the accumulation of gold reserves (at the expense of other countries) was believed to be the best way of increasing a country's prosperity. Granting State monopolies to specific companies , especially those associated with trade and shipping. Export business incentives to offer a competitive edge on global markets.

In the modern world, mercantilism is sometimes synonymous with policies such as: currency undervaluation. For example , government purchases foreign currency assets to keep their exchange rates undervalued and make exports more competitive. A recurrent criticism directed at China. An industry's Government subsidy for unfair advantage. Once again, China has been accused of providing state-supported industrial subsidies, leading to over-supply of industries like steel – suggesting other countries are struggling to compete. A wave of protectionist emotions, e.g. US tariffs on Chinese goods, and New 'Buy American' programs.