What are the characteristic or features and Meaning of Mercantilism or Commercial Capitalism.

 Mercantilism or Commercial Capitalism.

Mercantilism was an economic policy of European international (foreign trade) based on the collection of bullions (gold and silver) as a measure of nations wealth. This was the first stage of Capitalism which developed between 1400 to 1750.




Characteristics of Mercantilism Capitalism.

• Bullionism: Throughout the mercantile era much emphasizes was devoted to the collection of Gold and Silver (Bullions). The collection of bullions was the best way to guarantee the security, power and prestige of the mercantile nations.

• Colonial expansionism: Colonies existed primarily for the strengthening and enrichment of their mother countries. They supplied them with raw materials which they could not produce.

• National Unification: National unification was a product of the demise of feudalism and the rise of the centralized states. National unification was a necessary step towards internationalization of trade.

• Protectionism: This was erected mainly to give monopoly rights to the merchants over commerce. The English navigation acts of the 17th century and the Corn Laws of 1556 were set up to protect the English merchants from foreign interference.

• Militarism: Mercantilism was associated with the establishment of large standing armies such as the navy. These armies were useful in safeguarding mercantile nations, piracing on high seas and escorting merchant ship.

• Populationism: Mercantilism favoured the growth of population because they wanted labour force. With high population labour would be abundant and so production could be cheap.