What do you understand by mercantilism? Describe its main features.
Ans – Meaning, features of commercialism
In the 16th and 17th centuries, a new economic trend came in Western Europe, which was named commercialism. This new trend was known as Colbertism in France, Camarlinism in Germany and Merchantism or Merchantism in Britain.
What is meant by commercialism or mercantilism? meaning of commercialism
vanijyavad meaning in hindi;Commercialism is a special policy. The policy under which the commercial revolution was promoted is called commercialism or commercialism. The important change that came in the way of life in Europe in the 16th and 17th centuries was the importance of money rather than religion. The reason for this was the establishment and renaissance of national states. To make the state powerful and self-reliant, money was needed and in this age wealth meant gold and silver etc. So the states started making efforts to get it. For this the policy adopted by the state to regulate trade and commerce is called commercialism.
In the words of Hedge, “Commercialism is a modern term which refers to the policy of regulating the economic policy of the government especially trade and commerce”.
Features of commercialism
The characteristics of commercialism or mercantilism are as follows-
1. National regulation of industries
Now the governments of different countries started paying attention to the organization, growth, operation and arrangements of their country’s industries and trade, because where industry, trade was the basis of the nation’s prosperity and economic power, international trade was also a matter of prosperity and prestige. . Economic prosperity was the basis in other struggles for the promotion of national pride and for commercial gains.
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2. Importance of Gold and Silver
The commercialists gave the highest importance to the collection of gold and silver. He thought that precious metals, gold and silver were the most important sources to make the nation strong. The purpose of all economic activities was to collect more and more gold.
3. Balance of Trade
Gold and silver were made medium in the trade balance and to increase the quantity of gold and silver in our country, a policy of increasing exports and reducing imports was adopted. In this way, an attempt was made to balance the trade in favor of his country.
4. Optimum use of ships
Commercial writers were of the opinion that the trade in which ships are used more should be encouraged more because the income of shipping freight and insurance along with goods is much higher. The value of exports gets higher when goods are shipped from their ships.
5. Need for Colonies
The commercial writers emphasized the need for colonies to ensure foreign trade. With this, goods produced in their native country could be sold and cheap and raw materials could be obtained from the colonies at low prices.
6. Population Growth Necessary
These authors were of the opinion that the growth of population is necessary. With the increase of population, more soldiers and workers will be available. Cheap labor will keep the cost of production low and production high. The author also considered it necessary to remove the education of workers and unemployment.
7. Supporting Religious Freedom
The commercialist writers were of the opinion that every person should have religious freedom. With this foreign businessmen, workers and intellectuals can contribute more in making the country prosperous.
8. Economic Exploitation of Colonies
Portugal, Spain, Hollande, France and England made many laws to establish monopoly of trade in their respective colonies. But in this the interests of the people of the colonies were not taken care of. So they were oppressed and exploited and made poor and weak.