Mercantilism And Physiocracy In Western Europe
Between the 16th and 18th centuries, Western Europe was dominated by two distinct economic doctrines, that is Mercantilism and Physiocracy. The main difference between these two economic philosophies was the level of government control each sanctioned. While Physiocrats believed in a “laisser-faire” system, Mercantilists advocated for government control and regulation.
Under Mercantilism, a nation’s power depended heavily on the value of its and imports exports. Thus, it is critical for the government of that nation to have control over all foreign and trade. Ultimately their goal is to restrain imports while encouraging exports in order to achieve an advantageous balance of trade. They restrain imports via tariffs and quotas and highly
Under Mercantilism, a nation’s power depended heavily on the value of its and imports exports. Thus, it is critical for the government of that nation to have control over all foreign and trade. Ultimately their goal is to restrain imports while encouraging exports in order to achieve an advantageous balance of trade. They restrain imports via tariffs and quotas and highly