4. Definition
• According to the Mercantile System for a
country to be wealthy, it believed it needed
large amounts of gold and silver.
5. Beneficiaries ……
• Mercantilism is an economic theory from the
perspective of exporters, protectionists,
politicians, and money hoarders, and its
primary beneficiaries are big business and big
government.
6. Cont………
• Mercantilist were primarily writing for rulers
and to enhance national power. With more
gold they could larger and better armies and
acquire more colonies.
• In addition, more gold means more money to
circulate and so more business activity.
7. Historical background….
• Generally, Mercantilism is associated with the
rise of the “Nation state”
• Feudal institutions were weakened.
• Increased production of wool.
• The "Black Death" of 1346-61.
• Improvement in shipping etc.
8. Representative mercantilist
• Sir william pettty (1623-1687)
• Gerard de malynes (1586-1641)
• Thomas mun (1571-1641)
• Jean baptiste colbert (1619-1683)
9. Sir William Petty
• Sir William Petty was
an English economist,
scientist and
philosopher. He first
became prominent
serving Oliver
Cromwell and
Commonwealth in
Ireland.
10. CONT…
• He was member of the Parliament of England,
an entrepreneur, and was a charter(an original
or founding) member of the Royal Society.
11. Gerard de malynes
• Gerard de Malynes was
an independent
merchant in foreign
trade.
• An English
commissioner in the
Spanish Netherlands.
12. CONT..
• A government advisor on trade matters, assay
master(an officer who assays or tests gold or
silver coin or bullion) of the mint, and
commissioner of mint affairs
14. Thomas mun
• Successful
businessman,
director of East India
Trading Company.
• Argued favorable
trade as mean of
increasing wealth of
England.
15. Jean-Baptiste Colbert
• Jean-Baptiste Colbert
was a French politician
who served as the
Minister of Finances of
France from 1665 to
1683 under the rule of
King Louis XIV. His
relentless hard work and
thrift made him an
esteemed minister
• Saw colonies as markets
and provider of raw
material..
17. CONT…
Today ,there seems to be a resurgence of neo-
mercantilism ,as nations plagued with high
levels of unemployment seek to restrict
imports in an effort to stimulate domestic
production and employment…
18. CONT…
• Most industrial nations restrict imports of
agriculture commodities, textiles, shoes, steel,
and many other products in order to protect
domestic industries employment.
19. Pakistan
In the second half of 2000-10, particularly after
the global crisis and in response to twin high
deficits—fiscal and current account, heavy
protectionism was re-introduced
20. Japan
• Japan is a mercantilist nation which has a
policy of engaging in protectionism in order to
protect its industries.
• This results in high employment rates in
Japan, and high unemployment rates with
trading partners, including the United States.
