旅游管理专业英语（第二版）-Mercantilism.docVIP

Mercantilism Mercantilism is the economic theory that a nations prosperity depended upon its supply of gold and silver, that the total volume of trade is unchangeable. This theory suggests that the government should play an active role in the economy by encouraging exports and discouraging imports, especially through the use of tariffs. The economic policy that flourished in the early modern period is often referred to as mercantilism or as the mercantile system. These ideas stemmed from bullionism, a theory that precious metals equal wealth. The term was coined by the political economist Adam Smith in 1776, from the Latin word mercari, which means to run a trade, from merx, meaning commodity. It was initially used solely by critics, such as Smith, but was quickly adopted by historians. Today mercantilism is rejected by all serious economists, though some elements are looked upon favourably. Theory Mercantilist points: Nations are in a direct zero-sum competition with each other for wealth Gold and silver bullion are synonymous with wealth The main objective of these precepts, which would define international relations for centuries, is that a country needs a positive balance of trade to gain more precious metals. A favourable balance of trade would mean an influx of bullion, while a negative one would mean the bullion suplies would gradually be reduced. Thus each nation has to export more goods and services than it imports, except for nations that can produce a lot of their own precious metals. Gold was essential as it was used to fund the military. A nation with large gold reserves could thus field a larger force for a longer period of time than its rivals and would thus be victorious. Not all states believed in mercantilism. The Dutch, who were the most important economic power for much of this period, rejected the theory and instead advocated free trade. Mercantilism was most important in Britain and France, these were the other two major trading nations and