Question

Which action would be encouraged under a capitalist system but discouraged under a mercantilist system

Answer 1

Answer:

Mercantilism and capitalism differ in many ways so there are many actions that would be interesting for one system and bad to another. The action that  was most notably encouraged by capitalism and discouraged by mercantilism was free trade.

Explanation:

Mercantilism was essential to the establishment of European absolute monarchies. In order to establish their power, these monarchies controlled trade completely in favor of their states. Kings and queens of this time needed money to strengthen their armies and enforce their laws.

This economic system lasted from the 16th to the 18th century and was vital to the accumulation of capital that funded modern imperialism and capitalism.