How does 'neo-mercantilism' differ from classical mercantilism?
Understand the Problem
The question asks you to identify the key differences between neo-mercantilism and classical mercantilism. Understanding the core principles of each system is essential to answering correctly. Classical mercantilism focused on accumulating wealth through trade surpluses, particularly in gold and silver. Neo-mercantilism builds upon this but with some key distinctions.
Answer
Classical mercantilism focused on accumulating gold, while neo-mercantilism prioritizes economic development through export-oriented policies and import restrictions.
Classical mercantilism focused on accumulating gold and silver through trade surpluses, while neo-mercantilism prioritizes economic development by encouraging exports, discouraging imports, controlling capital movement, and centralizing economic control.
Answer for screen readers
Classical mercantilism focused on accumulating gold and silver through trade surpluses, while neo-mercantilism prioritizes economic development by encouraging exports, discouraging imports, controlling capital movement, and centralizing economic control.
More Information
Mercantilism is an economic policy designed to increase a nation's wealth through exports, which flourished in Europe from the 16th to the 18th century. Bullionism, protectionism, and colonialism are vital aspects of this policy. Neo-mercantilism is a more modern take on the older strategy.
Tips
A common mistake is thinking neo-mercantilism is just a straight continuation of classical mercantilism without any adaptation to modern economic realities. It is important to remember the shift in focus from simple accumulation of precious metals to broader economic and strategic goals.
Sources
- Classical Mercantilism, Neomercantilism and Contemporary Rent ... - bristoluniversitypressdigital.com
- Neomercantilism - Wikipedia - en.wikipedia.org
- Contemporary neomercantilism, on the other hand, is not primarily concerned with a trade or a balance-of-payments surplus - emerald.com
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