Respuesta :
A collection of economic policies that were created in Europe throughout the Modern Age, from the fourteenth century to the end of the eighteenth century, are known as mercantilism. According to the States, mercantilism was the root cause of a variety of different economic policies. It was distinguished by a significant amount of government economic involvement.
Making money for the government or monarch was the aim. It was made up of a number of steps intended to strengthen national states and unite the internal market. Three basic forms may be distinguished: protectionism, colonial pacts, and advantageous trade balances.
Capitalism is an economic system that centers on wealth creation in the pursuit of economic prosperity for the country, whereas mercantilism focuses on wealth accumulation through extraction of wealth, which they think is measured by the number of gold bullions that the nation has in its hands.
- Capitalism supports a competitive business environment where the forces of supply and demand determine the price of goods and services. In mercantilism, industries are run and controlled by monopolies which are protected and supported by the government through subsidies.
- Capitalism views wealth creation as the key to economic growth while mercantilism believes that economic prosperity can be achieved through the extraction of wealth.
- A capitalist society supports a competitive business environment while mercantilism advocates monopoly.
- Capitalism encourages consumer spending and enjoyment of life to the fullest in order to make the economy grow while mercantilism discourages extravagance of consumers to prevent outflow of money from the economy.
- Mercantilism is now considered extinct while capitalism enjoys world-wide acceptance.
- In a free trade system, individuals benefit from a greater choice of affordable goods, while mercantilism restricts imports and reduces the choices available to consumers. Fewer imports mean less competition and higher prices.
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