Jnj Jnjd Vcvj Jfk Mksdm Jnfm Skf J Nakdnmfm Jndm University Of Johannesburg Essay

518 words - 3 pages

C NGOBENI
TUTORIAL GROUP 2
ACCOUNTING STUDIES
218026538
The purpose of this essay is to explain how the raise of wealth during the period of exploration and trade(mercantilism) created the optimal conditions for industrialism to occur. Mercantilism is an economic system adopted by countries whose governments want control over the economy. The basis of this system involves wealth accumulation, establishment of favorable trade with other countries, and development of internal resources in the manufacturing and agriculture sectors.
Mercantilism is an economic system that’s aim is gaining power by traveling across the world and starting colonies in places that have good raw materials. Raw materials that they can use for making money. This economic system was used by the Big 3 countries in Europe. They took the raw material and turned it into manufactured goods and then sent them back out and sold those manufactured goods. The Big 3 countries wanted to control the colonies and force them to send all their raw material to the Big 3 countries. The colonies were not allowed to trade between each other or have any business between each other. They had to only do business with the Big 3 countries. “Mercantilism is to give power to the Mother Country by controlling colonies and controlling the trade between Mother countries.” (
Mercantilism is based on a favorable balance of trade. This means that the Mother Country brings in very little in the country or they get it at a very low cost then they sell it out the country at a very high cost. The reason why it was such a success is because the Mother Country used...

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