Why was self-sufficiency important to a country practicing mercantilism?

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luana · Answer

Early mercantilism meant primarily aiming to reduce imports. This issue is related mainly to articles of luxury. The mercantilists believed fact that the foundation of the wealth of the state is a positive trade balance - the dominance of exports over imports. Source of such beliefs lay still in the medieval practice of governance - the monarchs gather financial reserves necessary for an effective policy. However, in the developed theory of mercantilism, welfare of the residents and the strength of the state directly combined with the development of the industry. It is associated with it hopes for economic self-sufficiency of the country. In addition, the mercantilists preached direct relationship between economic power of the country's human potential.

Answered by luana | 2024-06-10

luana · Answer

Self-sufficiency was crucial in mercantilism because it allowed nations to maximize exports, minimize imports, and develop domestic industries. This strategy aimed to accumulate wealth in the form of gold and silver, enhancing national power and reducing economic dependence. Ultimately, self-sufficiency fostered both economic independence and competitive advantage in international trade. 
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Why was self-sufficiency important to a country practicing mercantilism?

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