MERCANTILISM 2
Mercantilism
Question One
Mercantilism enriches a country by ensuring that it exports more commodities than it
imports. The theory works to favor a country’s acquisition of wealth by amassing wealth through
trade with other countries. Exporting more and importing less means that the country gains more
gold and silver from its trades. Restraining the production of commodities which can be
produced domestically within the country affords local producers monopoly in their industries.
The end result is that the country’s reserves of gold and silver are increased through the trade
with other countries.
Question Two
The producer benefits more than the consumer in a mercantilist system. Consumption is
the sole purpose and end of all efforts of production. As such, the interests of a producer are to
be attended. In such a bid, the interests of the consumer are often sacrificed to those of the
producers thereby considering production and not consumption which is often an ultimate object
and end of all commerce and industry.
Question Three
When engaging in foreign trade, a country can increase it gold and silver reserves. It is
even more beneficial when the country in question exports more goods than it imports as the
move ensures that the country amasses more wealth. These ‘benefits’ should be considered as
they allow the prohibit the importation of goods that can be produced domestically, thereby,
flourishing these industries in monopolistic gain. Even so, the system can be argued as being
unfair, outdated and not beneficial by consumers. Case in point, the system favors the gains of
producers at the expense of consumers by neglecting the needs of the consumers to satisfy those
