1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Crank
4 years ago
11

How is it that exporting more than one import leads to amassing more bullion in the treasury?

History
2 answers:
PSYCHO15rus [73]4 years ago
5 0

In mercantilist theory, a country that exports more than it imports will have an overall greater profit margin in what we would call "cash supply."  In the mercantilist era, they conceived of precious metals (gold and silver) as the only true "cash" supply and the true definition of wealth.  If you imported less than you exported, you'd have to pay for those added imports with bullion (blocks of gold or silver), which would thus deplete your supply of precious metals in the national treasury. By exporting more than you imported, you could amass more bullion in your own treasury.

"Mercantilism" is a term we get from Scottish philosopher Adam Smith (1723-1790).  Smith criticized what he called the "mercantile system" because it restricted trade and thus restricted economic growth.  The mercantile system believed the wealth of the world was a fixed amount, measured primarily in gold and silver accumulated.  The system promoted a nation selling its products abroad but not needing to buy from others, or imposing heavy tariffs if importing anything.  Colonies were created to provide raw materials and resources to the mother country and a market for the mother country's products.  Commerce was heavily controlled by the government through charters granted to specific trading companies.

Adam Smith countered by advocating a free market -- the opportunity for all nations to increase their wealth by exchanging goods freely with one another according to what would become known as capitalist principles.

NARA [144]4 years ago
4 0
<span> It is the Mercantilist theory,which states that a country’s power is directly proportional to the amount of gold and silver that can be amassed in its treasury.</span>
You might be interested in
What innovation helped Galileo observe the detail preserved in these sketches
REY [17]
I believe the answer you are looking for is the telescope. Hope I helped.
7 0
3 years ago
Read 2 more answers
What are five of the most important moments in the worldwide history of women’s rights?
LuckyWell [14K]

1848. First Women's Rights Convention. ... 1849. The First National Women's Rights Convention. ... 1851. “Ain't I a woman?” ... 1861-1865. The Civil War. ... 1866. Formation of the American Equal Rights Association. ...

8 0
3 years ago
1. What are two reasons for the Cold War?
Liono4ka [1.6K]
Ans 1: Historians have identified several causes that led to the outbreak of the Cold War, including: tensions between the two nations at the end of World War II, the ideological conflict between both the United States and the Soviet Union, the emergence of nuclear weapons, and the fear of communism in the United States

Ans 2: Civil Rights Movement was a reform movement launched by Martin Luther to abolish legal racial discrimination against African-American. It was a struggle for social justice that took place mainly during the 1950s and 1960s for blacks to gain equal rights under the law in United States.

hope this helps.
4 0
2 years ago
Why did the United States go to war against Iraq in 2003? Al-Qaeda joined forces with Saddam Hussein. Iraq was believed to have
Free_Kalibri [48]
The United States went to war against Iraq in 200e because Iraq was believed to have weapons of mass destruction. Following faulty intelligence and poor decision making the United States decided to go to war in Iraq over the false belief that Iraq had weapons of mass destruction. 
6 0
3 years ago
Read 2 more answers
3. Which of the following terms refers to a song of penitence im judaism?
natima [27]

Answer:

b

Explanation:

it is b because I got it correct

3 0
3 years ago
Other questions:
  • Why did "new immigrants" have a more difficult time adapting to their new life in America than did "old immigrants"? Select all
    7·1 answer
  • Why were state constitutions significant when the U.S. Constitution was written?
    14·2 answers
  • How did Tecumseh promote cooperation among American Indians?
    6·2 answers
  • Which area compromised the northwest territory?
    15·2 answers
  • Did civil rights movements significantly change the economic, social , and political status quo for most groups by the end of th
    6·1 answer
  • The prosperity of the large-scale commercial plantations established by the romans depended on:
    12·1 answer
  • How do you think Cesar Chavez's work impacts the lives of working people today?
    5·1 answer
  • Which of these was the most common way slaves resisted slavery?
    14·1 answer
  • Answer the discussion topic
    10·1 answer
  • The invasion of Laos was the first test of _____.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!