Adam Smith and the Principle of the Mercantile System

Adam Smith and Business System Principles Adam Smith wrote that European business, and more specifically the UK business, turned from producer change system to consumer needs into producer's most productive production system It is. . There are places in the market, in which case consumers will get mediocre products. In response to the strict import law, he said that a strong foreign trade system would be the only way to provide high quality products to British citizens.

By 1776, Scottish philosopher Adam Smith has created the term commercial system, and European countries are trying to implement business theory for the second century. The basis of Mercantilism is the notion that the wealth of the country is measured by the amount of gold and silver owned by the state. The most powerful year in Spain is the fact that it happened when we first harvest gold and silver from overseas assets. Business theory believes that the existence of colonies is due to their economic interests and they are useless unless they help them achieve profits. The home country should extract raw materials from its assets and sell it to finished goods, the rest are beneficial to the European countries. Such transactions should be monopolized and intruders from foreign countries are prohibited.

Mercantilism is an economic nationalism that builds a rich and powerful country. Adam Smith has created the term "commercial system" to represent a political and economic system aimed at enriching the country by restricting imports and encouraging exports. From the 16th century to the end of the 18th century, this system dominated Western European economic thought and policy. It is speculated that the objective of these policies is to achieve an "advantageous" trade balance that allows gold and silver to be injected into the country and maintain domestic employment. Contrary to the physicists or the abandoned agricultural system from the 19th century to the 20th century, commercial systems enjoy the benefits of merchants and producers such as the UK East India Company whose activities are protected or encouraged by the state It is.

Mercantilism finally disappeared in the second half of the 18th century and was replaced by a free market economy supported by Adam Smith. From a later point of view, the commercial practice of collecting assets for future "selling points" means that the state actually reduced the value of the gold bars. Needless to say, by closing the import border and restricting dependence on foreign supply, every country that implements Mercantilism has its own raw materials (the British climate will never contribute to wine production There was not). Mercantilism is now widely regarded as a primitive economic method