There were particular goods in mercantilist policies that were not preserved as a commodity and didn't have any economic value. Therefore, in mercantilist policies, commodification established a monetary value for goods that were not previously traded.
EXPLANATION:
In a capitalist economic structure, commodification is the alteration of services, ideas, goods, and individuals into objects or commodities of commerce. The most basic commodity, based on Arjun Appadurai, is " anything intended for exchange," or anything of economic value.
Commodification is usually disapproved of the surroundings that several things should not be treated as commodities—for instance, education, water, information, data, knowledge, human life, and animal life.
Based on Gøsta Esping-Andersen, individuals are 'turned into objects' or commodified when trading their labor in the market to employers. Slavery is a form of human commodification.
Consumers can benefit from commoditization because seamless competition usually causes lower values. Branded producers mostly suffer below commoditization, because the value of the brand is able to be weakened. Though, incorrect commoditization leads to substantial risk once premier products do have substantial value to offer, particularly in safety, health, and security. Examples are counterfeit drugs and generic network services
Consumers can profit from commoditization because perfect competition often leads to lower prices. Branded producers usually hurt under commoditization, because brand value (and the ability to order premium prices) can e deteriorated. However, false commoditization can produce great risks when the main products have substantial value to propose, especially in health, safety, and security.
Mercantilism is a policy of national economy which is designed to enlarge exports, and minimalize imports, of a country. These policies are aimed to decrease the possibility of a current account deficit or achieve a surplus of a current account. Mercantilism comprises a national economic policy intended for gathering monetary reserves by a positive trade balance, specifically finished goods. Historically, such kind of policies often sparked war and also inspired colonial expansion. Mercantilist theory diverges in complexity from one author to another and has changed over time.
LEARN MORE:
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
• What is meant by commodification? brainly.com/question/13295457
• The policy of mercantilism was intended to? brainly.com/question/2503300
KEYWORDS : Commodification, Mercantilist Policies
Subject : History
Class : 7-9
Sub-Chapter : Commodification
