Question

What was the mercantile system and why did it fail?

Answer 1

Mercantile system was an Economic system that prevailed in 17th and 18th centuries.

It relied on European countries obtaining wealth from their colonies.

Mercantile system was a system in which a country's main goal was to acquire as much money as possible and exploit colonies.

Failure of mercantilism:-

• Production of basic product and processing it.
• Benefit in looser trade system from non mercantile system.
• On a personal level mercantilism hurt traders especially in the colonies and it forced them to trade with a smaller market inside their nation.
• This discouraged the merchant and encouraged the formation of a black market.
• Free trade is great in a position to dominate the market.
• Tariffs were in the 30 percent range in America in the second half of the 19th century.
• They acted as a Free trade by enacting barriers in the same way as protectionism Restricting trade by tariffs hurt the country and they were forced to pay the tariff.
• As a result Tariff caused the system to fail. Re