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Quite simply, if you import exclusively raw materials and export exclusively finished goods, the costs of finished goods will always exceed the costs of raw materials (because of the value-added in making the finished good) and therefore lead to a positive trade balance.
In addition, most mercantilist countries had set rates at which the raw materials had to be sold, which was at the bottom of reasonable value or below market value.
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Mercantilist theory asserts that a nation should maintain a balance of payments?
positive
How did French mercantilism system work?
System based on the fact that a country benefits by accumulating monetary reserves through a positive balance of trade.
What are the advantages of mercantilism?
balance of trade
What relationship does balance of trade and mercantilism have?
Mercantilism restricts trade to only trading with the mother country.
What was the goal of mercantilism?
creation of a favorable balance of trade
Mercantilist theory asserts that a nation should maintain a balance of payments?
positive
How did French mercantilism system work?
System based on the fact that a country benefits by accumulating monetary reserves through a positive balance of trade.
How did Europeans nations maintain a balance of power?
European nations maintained a balance of power through wars and shifting alliances.
What are the advantages of mercantilism?
balance of trade
What is the practice of controlling a country's foreign trade building an army of locals and keeping local rulers in power called?
It is called mercantilism. Mercantilism is an economic system where a country seeks to maintain a positive balance of trade by controlling imports and exports, building a strong military force, and supporting local rulers who can help achieve economic goals.
Which was a feature in mercantilim?
A key feature of mercantilism was the belief in accumulating wealth through a favorable balance of trade, where a country exports more than it imports. Governments regulated and controlled trade to increase exports and accumulate precious metals. Protectionist policies, such as tariffs and subsidies, were common to support domestic industries and maintain a positive trade balance.
What relationship does balance of trade and mercantilism have?
Mercantilism restricts trade to only trading with the mother country.
Which was a feauture of mercantilism?
seeking a favorable trade balance
What was the goal of mercantilism?
creation of a favorable balance of trade
What was one goal of mercantilism?
creation of a favorable balance of trade
Which was an aspect of mercantilism?
An interest in having a favorable trade balance
How many grams of protein a day per pound of bodyweight is a good range in which to maintain positive nitrogen balance?
.8grams
