Chapter 2.1 : Early forms of mercantilism

Question 1

What is Mercantilism’s centre of analysis?

Answer 1

the nation state

Question 2

Who termed the coin ‘Mercantile system’?

Answer 2

Adam Smith

Question 3

When did the first distinctly mercantilist writings emerged?

Answer 3

16th century (1500s-1599s)

when modern capitalist world economy started to come into existence

Question 4

What are the core ideological tenets of Mercantilism?

Answer 4

1. National interest (economic policy)
2. Nation state (directing economic activity)
3. Favourable trade balance (growth and prosperity)

Question 5

Jacob Viner (1848) argues that …?

Answer 5

mercantilists in fact viewed power and wealth as interrelated and interdependent objectives of state policy, rather than as trade-offs

Question 6

What are the 4 essential elements of all mercantilist writings?

Answer 6

1. State’s overriding need for security within an environment of international anarchy (max wealth as means of power)
2. Power essential means to wealth creation
3. State’s survival cannot be compromised (security > wealth)
4. Internation system and economy as zero sum game (accumulation of gold and silver bullion)

Question 7

What do all Mercantilist authors recognise?

Answer 7

the intimate link between the need for

• national security
• state building
• economic wealth creation

Question 8

Early mercantilism’s chief contribution to international political economy lies in recognising and legitimising what?

Answer 8

domestic economic activity and promoting external economic expansion, be it through peaceful or military means