Principles of mercantilism. Economic preconditions of mercantilism
Mercantilism (Italian - “merchant”) - a school of thought whose followers saw foreign trade as a source of wealth due to the implementation of a trade surplus (the excess of exports over imports of goods). The concept of mercantilism reflected the interests of large trading monopolies.
Basic principles of mercantilism:- gold and treasures of any kind as an expression of the essence of wealth; - regulation of foreign trade in order to ensure the influx of gold and silver into the country; - support for industry by importing cheap raw materials; - active protectionism; - encouragement of exports, especially finished products; - support for the expansion of trading capital, in particular, encouraging the creation of monopoly trading companies; - development of navigation and fleet, seizure of colonies; - a sharp increase in taxation.
THERE ARE TWO STAGES IN THE DEVELOPMENT OF MERCANTILISM: EARLY MERCANTILISM AND LATE MERCANTILISM.
Early mercantilism (monetarism, balance of money system) . It arose before the great geographical discoveries and was relevant until the mid-16th century. Characteristic features of early mercantilism : - comprehensive restrictions on the import of goods; - a ban on the export of gold and silver from the country under the sign of the death penalty; - setting high prices for exported goods; - bimetallism system (fixed ratio between gold and silver coins); - the theory of monetary balance, which justified policies aimed at increasing monetary wealth, often through legislation.
The most prominent representative of early mercantilism was the Englishman WILLIAM STAFFORD(1554-1612). Job "A Brief Statement of Some Common Complaints of Various Our Countrymen"(1770), features of which: - written from the position of protecting the active regulation of monetary circulation; - counterfeiting of money and its outflow abroad causes prices to rise and worsens the financial situation of the people; - solving certain problems in prohibiting the export of gold and silver, in regulating trade in order to limit imports.
Late mercantilism covers the period from the second half of the 16th century. to the second half of the 17th century. (trade balance system). Characteristic features of late mercantilism : - removal of strict restrictions on the import of goods and the export of money; - the idea of “trade balance” dominates; - protectionism of the state policy; - the determining function of money is the function of the medium of circulation; - monometallism system; - a system of active trade balance, which is ensured by the export of finished products of one’s country and with the help of intermediary trade, in connection with which the export of money abroad was allowed. At the same time, the principle was put forward: “buy cheaper in one country and sell more expensive in another.”
The most famous representatives: THOMAS MEN(1571-1641) - Englishman, proposed a policy of protectionism or a policy of protecting the national market. A. MONCRETIEN(1575-1621) – French. Main work "Treatise of Political Economy"(1770). Coined the term "political Economy". He advocated for the expansion of trade, defended the receipt of large profits by traders, and demanded that foreign merchants be limited.
A striking example of late mercantilism was politics J. B. COLBERT(1619 – 1693) (Minister of Finance of Louis XIV). – "COLBERTISM". Basic moments : - patronage of manufactories; - high import duties; - ban on the export of raw materials; - planting new industries; - creation of companies for foreign trade, etc. His policy was aimed at boosting industry, as a result of which the interests of France's agricultural sector remained in the background.
Despite the rather significant differences in approaches to “this policy,” all mercantilists were united in one thing: - they did not support the ideas of free trade and the complete emancipation of this force; - supported the policy of protectionism. Protectionist policy – protection of domestic production from foreign competition.
The idea of money in mercantilism: - early mercantilists identified wealth with gold and silver, late- wealth was understood as a surplus of products that remained after satisfying the country's needs, but which should be converted into money on the foreign market; - due to the lack of money, their functions early mercantilists reduced it to a means of accumulation; late– they also saw money as a means of circulation. At the same time, defending intermediary trade, late mercantilists essentially interpreted money as capital; - the mercantilists developed the metal theory of money in its most complete form; they put forward the doctrine of full-fledged metallic money as the wealth of the nation. A stable metal currency, in their opinion, was one of the necessary conditions for the economic development of society.
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Introduction
2.1 Mercantilism in Russia
Conclusion
Bibliography
Introduction
mercantilism economic physiocratism doctrine
According to the views of some scientists, the creation of economic science began at the end of the 18th century on the basis of two foundations laid in earlier periods. The first of these foundations is the ancient and medieval economic views of philosophers. As an example of medieval economic views, the fair price theory can be considered. The second of these foundations is the popular arguments used in solving current practical economic problems that arose in the 16th-18th centuries. It is this, from the foundations of economic science, according to the views of scientists, that is called mercantilism (from the French “mercantile” - trade).
The relevance of the topic lies in the fact that the first school of economic science was mercantilism (from the Italian word “mercante” - merchant, merchant), which became widespread and occupied leading positions in the economic thought of many countries until the end of the 17th century. Mercantilism expressed primarily the economic policy of the state. The mercantilists represented the interests of merchant capital. Its representatives practically solved the problems of primitive accumulation.
The purpose of the work is to study the features of mercantilism as the first school of economic thought.
Main tasks: to identify the primary role of mercantilism in the system of economic views, and also to consider the stages of creating a school of economic teaching of mercantilism. The most important task is to give a complete definition of mercantilism, reveal its goals and objectives, and study the history of its emergence; give a brief description of the essence of mercantilism; consider the socio-economic prerequisites for its occurrence, as well as the stages of its development in Russia at various periods of time.
1. Mercantilism - the first school of economic science
1.1 What is mercantilism
Mercantilism (Italian mercante - merchant, merchant) is the first school of economic theory that arose in England, France, Italy and other countries in the initial period of the development of capitalism. Its followers attempted to determine the form of society's wealth and ways to increase it.
Mercantilists introduced a number of important provisions into economic theory. They saw the solid foundation of the wealth of each nation not in the increase of natural products, but in the accumulation of money (coins of gold and silver). The source of such accumulation, in their opinion, was the profit (income) that arose in trade. But if the exchange of goods for money takes place within the country, then some individuals can enrich themselves at the expense of others. However, the total amount of national wealth does not increase. Such wealth, according to mercantilists, increases only through foreign trade. Here the increase in wealth was self-evident. Goods in one country were bought at lower prices, and in another they were sold at higher prices. Thus, the Moscow Company for Trade with Russia, organized in England, bought 1 piece of mast wood for 25-30 kopecks, and sold it for 4-5 rubles.1
Early mercantilism (last third of the 15th century - mid-16th century) was called the monetary system. He was characterized by concern for the active monetary balance (the excess of the amount of money imported into the country over the amount exported from it). For these purposes, the following tasks were pursued: to attract as much money as possible from abroad and keep gold in the country, spend less of it and prohibit its export to other states.
Late mercantilism (second half of the 16th century - 17th century) opposed the ban on the export of money, which impeded the development of foreign trade, and for an active trade balance (the excess of the value of goods exported from a country over the value of goods imported into a given country ).
The objectives of economic theory, according to mercantilists, are as follows:
Pursue a policy of protectionism (patronize domestic industry and trade). This means the establishment of high customs duties (taxes) on goods imported from abroad; introduction of incentive bonuses for domestic goods exported to other countries;
promoting the development of industries whose products are intended for foreign trade, and other similar measures.
The French mercantilist Antoine de Montchretien in 1615 gave the name to the economic theory that substantiates the policy of the state - political economy (Greek politike - the art of governing the state), i.e. the science of state management of the economy. Then the idea of political economy emerged as a science that reveals the role of the state in increasing national wealth.1
Mercantilism historically became obsolete in the new era, when the economy began to be dominated not by commercial, but by industrial capital.
1.2 Mercantilism as an economic policy
Mercantilist policies were carried out in all countries of Western Europe, but depending on the specific historical situation, they gave different results. Mercantilism achieved its greatest successes in England, where the most favorable conditions for the development of capitalism existed. In France, mercantilist policies were pursued with particular persistence in the second half of the 17th century. minister of Louis XIV - Colbert (after his name this policy was called Colbertism). In an effort to expand French exports, Colbert planted manufactures, promoted the development of shipping, and sought new markets.
At the same time, Colbert prohibited the export of grain, considering low prices for bread a necessary condition for the development of industry and trade. Feudal forms of exploitation in France were not eliminated, the peasants were ruined by heavy taxes.1 Colbert's policies led to some growth in capitalist production in France, but the main branch of the French national economy, agriculture, was in a state of deep decline.
The main goal of mercantilist policy was to attract as much gold and silver as possible to the country. The objective basis of this desire was the increased need for money due to the development of commodity-money relations.
In the intense struggle that unfolded between European countries to master the sources of precious metals and attract them to the country, a whole system of economic policy measures developed, with the help of which individual countries sought to increase their reserves of gold and silver.
1.3 The role of mercantilism in the development of economic ideas
The ideology of mercantilism subsequently received a variety of assessments. Some, like F. List, saw its essence in the creation and development of the country's productive forces as a prerequisite for national wealth. Others, like K. Marx, condemned the mercantilists for looking for the source of the nation's wealth in the sphere of circulation, and not in the sphere of production, mentioning the latter only from the standpoint of its ability to ensure the flow of money into the country. A. Smith introduced the view of mercantilism as a kind of prejudice. The greatest economist of the 20th century. J. Keynes, in his work “The General Theory of Employment, Interest and Money,” devoted a chapter to mercantilism entitled “Notes on mercantilism, the laws against usury, stamp money, and the theories of underconsumption,” demonstrating his interest in the economic policies of the mercantilists. However, J. Schumpeter noted that mercantilism was not so much a scientific direction as a practical policy, and the literature generated by it, being a secondary and by-product, contains, in general, only the rudiments of science.
In the process of studying the works of mercantilists, it becomes obvious that there are grounds for such polar assessments of the significance of mercantilistic ideas.
Meanwhile, the practical orientation of the mercantilist system in the field of trade operations and monetary circulation and its influence on the further formation of economic science should in no case be underestimated.
The mercantilist doctrine had the following disadvantages:
Due to historical conditions, mercantilism was limited to the study of phenomena in the sphere of circulation in isolation from production;
In methodology, the mercantilists did not go beyond the framework of empiricism, limited themselves to superficial generalizations of exchange phenomena, and therefore could not understand the essence of many economic processes;
The questions of the theory of commodity production were not resolved, although price was opposed to production costs;
While paying considerable attention to money, they did not reveal its essence and could not explain why money, as a universal form of wealth, is opposed to all other goods. They did not understand that money is a commodity, but a special commodity, since it serves as a universal equivalent. Having interpreted the functions of money one-sidedly, monetarists reduced them to the accumulation of wealth; trade balance theorists added the function of world money;
They did not understand the role of domestic trade, although it was an important area of merchant income. It was believed that internal trade does not increase national wealth, since the merchant’s income simultaneously leads to the buyer’s expenses;
The mercantilists declared only export industries to be profitable; the markup on the sale of goods was mistakenly considered the primary source of profit;
The one-sided approach to the analysis of the economy was reflected in the interpretation of productive labor, which, in their opinion, was only labor employed in export industries.
However, when assessing the achievements of thinkers of that era, we must not forget that in economic thinking they solved a difficult problem - they overcame religious and ethical principles that had been established for centuries.
Within the framework of mercantilism, a new name for economic science appears - “political economy”, which involves the study of economic issues at the macro level (country, polis). It was the mercantilists who introduced the capacious concept of “national wealth,” which was later widely used by economists and replaced the theological term “common good.”
Mercantilism is the first theoretical development of the capitalist mode of production, capitalism was interpreted as a new mode of production, and its features were identified. Late mercantilism was progressive: it promoted the development of trade, shipbuilding, the international division of labor, in other words, the development of productive forces.
The mercantilists posed a new and important problem of the economic role of the state. State policy, called “protectionism,” is currently actively used by many countries to protect the interests of national producers. However, for the history of economic thought, mercantilistic literature is valuable not so much for its conclusions regarding economic policy, but for the increase in scientific knowledge based on economic analysis.1
2. Features of mercantilism in Russia
2.1 Mercantilism in Russia
Eastern Europe, and especially Russia, lagged behind the West in its development. Therefore, the first steps of the “era of primitive accumulation,” including the theory and practice of mercantilism, took place in Russia in the middle of the 17th century, during the reign of Alexei Mikhailovich. The first major Russian mercantilist was Afanasy Ordin-Nashchokin (1605-1680). Being an educated man who had contacts with the West, he carried out his first experiments in the policy of protectionism, becoming a governor in Pskov, then a border city. Then, having become the head of the Ambassadorial Prikaz, Ordin-Nashchokin pursued a policy of protectionism on a national scale and in 1667 issued the “New Trade Charter,” written from the standpoint of early mercantilism. In it, the rights of foreign merchants were significantly limited - they were allowed to trade only in the border cities of Russia, retail trade was prohibited, import customs duties were significantly increased, which were levied only on gold and silver at a compulsorily low rate, etc. In addition, Orlin-Nashchokin tried, although unsuccessfully, to initiate the development of bank credit in Russia. Foreign trade, with the active assistance of the state, began to warm up in Russia under Peter I on a much larger scale. Among the mercantilists of the Peter I era, one can single out Fyodor Saltykov (d. 1715), who, using his observations in England, put forward projects for improving foreign trade policy in Russia.
“The merchant class,” he wrote, “is the solid foundation of the wealth of all states, as it now flourishes in England and Holland.” Saltykov called for the construction of export manufactories, “and when those manufactories described above multiply immensely in the Russian state and they are perfect, and at that time they can be sent for sale to other states, which will be a state profit.” He also proposed organizing trading companies, creating consulates to support Russian merchants abroad, and sending merchant children abroad to study commerce and accounting. Saltykov repeatedly returned to the idea of finding a Northern Sea Route for trade with China and India.
2.2 Historical significance of mercantilism
Mercantilism left a noticeable mark on the history of economic thought, bearing in mind both positive and negative elements of the creative heritage of its representatives.
Firstly, the concept of the mercantilists was almost entirely addressed to the practice of economic life, although mainly in the sphere of circulation (consumption). This, however, allowed them to introduce many economic categories into scientific circulation and to identify important patterns in the field of trade, lending operations and money circulation. But their influence on other areas of the economy was not always adequate.
Thus, quite rightfully considering money as the most important means for the development of domestic industry and trade, mercantilists, however, did not attach importance to attracting foreign investment into the national economy. In addition, the problem of unemployment was unimportant for them; The main reason for “voluntary unemployment” was considered to be either “laziness” or “depravity”, generating reluctance to work in workshops or factories for the sake of one’s own leisure time.
Secondly, mercantilism determined the specifics of the formation of market economic relations and the features of the classical political economy that replaced it in developed European countries, and primarily in England and France.
In particular, in France, where the policy of protectionism was most active in the 17th century. carried out by the superintendent (minister) of finance Jean Baptiste Colbert, a powerful network of manufactories in industry was created. But at the same time, the development of farming was restrained here, including through a ban on the export of grain from the country and its free import from other countries. This circumstance ultimately explains the “narrowness” of the French domestic market at that time in comparison with its long-time rival, England. Subsequently, French mercantilism for this reason began to be called Colbertism, and the so-called teaching of the physiocrats became a unique French school within the framework of classical political economy.
In England, mercantilism, as is obvious from the history of the economy, turned out to be much more “fruitful” than in France. The main successes of this country’s protectionist policy in the field of trade and industry in the 17th century. usually associated with the name of Thomas Men, one of the leaders of the East India Company.
It is also known that as a result of the ideological struggle against mercantilism, it was in England that the best theoretical generalizations of the values of classical political economy were achieved, reflected in the works of A. Smith, D. Ricardo, T. Malthus, J. S. Mill and others.
In addition, England, being for a significant period of the 19th century the most economically developed power in the world, laid the foundation for the practical implementation of the most important anti-mercantilist position, declaring in the middle of the 19th century. about its unconditional commitment to the policy of free trade, i.e. complete freedom of both domestic and foreign trade. 1
2.3 Difference between mercantilism and physiocratism
The 18th century, which gave birth to liberalism, was characterized by two more currents of economic thought - mercantilism and physiocracy.
The difference between them was not in ideas about the nature of economic regulation, as it might seem, but in ideas about the nature of wealth as such.
Mercantilists saw wealth in the amount of money accumulated. Physiocrats - in the aggregate of agricultural products, primarily food products. Liberals are the total product produced by society.
Hence the logic of the mercantilists, today largely inherited by the monetarists - to concentrate money and strictly control its expenditure. The logic of liberals is to ensure the development of production.
From the point of view of mercantilists, the main law of economics is not to spend more than you have, but it is better to spend significantly less, making the maximum possible accumulation. The less government spending, the better. “Monetarists” say approximately the same thing.
From the point of view of liberals, the main law of economics is the development of production. The more money invested in its development, the greater the product and public asset will be.
Therefore, in this sense, the Bolsheviks were the heirs of Adam Smith and the classical liberals, and modern Russian economic rulers are the heirs of the mercantilists. Strictly speaking, for the last twenty years the financial authorities have been redistributing what the Bolsheviks created during their reign.
There are two approaches: one comes down to the question of “what to sell”, and the second to the question of “what to produce”.
Russia has been developing almost exclusively within the framework of the first question for the last twenty years. Of course, even here there is a difference between the 90s and the 2000s. At the first stage, everything possible was sold at any price. At the second stage, the situation changed and it became possible to focus on the export of raw materials at rising prices.
Naturally, the country's public wealth is declining, but the wealth of the elite is growing. But then this means that the wealth of the chosen ones is not at all the result of their production activity, but the result of their appropriation of the funds of everyone else, that is, purely expropriatory activity.1
The authorities do not know what to do to correct the situation, and perhaps do not want to do it. Due to the type of her mentality, she is not even able to formulate a model of an economy built on the development of production.
This category itself is alien to her. The fact is that the authorities still understand the operation “sell a product, get money, buy a more expensive product.” But he clearly doesn’t understand the operation “invest money, produce a product of greater value than invested, sell it for more money.” “Monetarists” do not know how to do what any capitalist of their beloved 18th century could do - organize the production of surplus value.
But social wealth can increase only in the process of production, and only in it can funds appear to be invested in formally “non-productive spheres” - education, medicine, culture, science. If production is not established in a country, then there will be nowhere for new, modern levels of production to come from. And economic power, which in the modern world should be the organizer of production, turns out to be only a collector of tribute from the have-nots in order to ensure guarantees for the haves.
Conclusion
The mercantilist doctrine first began to take shape in Italy, Spain, Portugal and the Netherlands, and from the 17th century - in Holland, where the conditions necessary for this doctrine arose already in the 14th and 15th centuries. It was in these countries that the process of international trade gained momentum, which contributed to the strengthening of the role of trading capital, whose interests became the basis of the theory and practice of mercantilism. At first, the intensive development of commercial capital was observed in Italy. At the end of the 15th century, after the great geographical discoveries - Columbus of America and Vasco da Gama of India - the trade advantages of the Mediterranean cities and all of Italy were destroyed; Spain and Portugal took first place. In the 16th century they were supplanted by Holland, the basis of whose dominance was the famous manufactories, shipping and the predatory colonial system, which became the source of the initial accumulation of capital. Much later, in comparison with the named countries, England gained predominant importance in the colonial system and international trade.
The first attempt to scientifically systematize economic activity was made by the mercantilists at the end of the 18th century. According to them, the source of the state's wealth is trade. One of the founders of mercantilism was the French nobleman Antoine de Montchretien. Author of the work: “Treatise on Political Economy”, there he first used the concept of “political economy”.
The ideas of the first scientific system could not but express their time, when the main intermediaries between producers and consumers were merchants; the dominance of subsistence farming was slowly but steadily being shaken, and the scope of commodity production was correspondingly expanded.
The essence of mercantilism is that its representatives identified the country's wealth with gold and silver, and considered its source to be the sphere of trade, especially foreign trade.
The formation and development of this school goes through two stages: early and late mercantilism. The border between them is considered to be great geographical discoveries. Early mercantilism is characterized as a monetary system and comes down to the comprehensive accumulation of money in the country and the state treasury by prohibiting the export of money from the country and attracting money into the country.
Late mercantilism developed from the second half of the 16th century and reached its development in the 17th century. His central idea was a trade surplus system. It is widely used in world practice today. Its essence: the greater the difference between the cost of exported and imported goods, the richer the state becomes. Even then, mercantilists understood that exporting not raw materials, but finished products, was much more profitable.
Mercantilists drew attention to the fact that processing gives added value to raw materials. You can make a lot of money from this value if you limit or completely ban the export of raw materials and export only semi-finished products.
To strengthen the active balance and capture foreign markets, governments regulated the import of goods by imposing duties on foreign goods and strongly encouraged the export of products to foreign markets.
For this purpose, government support was provided for the development of the domestic manufacturing industry. Late mercantilism is therefore characterized as a commercial or manufacturing system.
It is important to note that the mercantilists considered it inappropriate to allow internal competition and especially competition in the domestic market from foreign merchants.
Mercantilism refers to the economic policy of states during the period of the so-called primitive accumulation of capital, which meant the preparation of the capitalist mode of production. In addition, mercantilism is understood as an economic doctrine that expressed the interests of merchant capital. Economic policy and economic doctrine should not be opposed. In this case, they form a single whole. The main principle of traders (merchants) - “buy less from foreigners than sell” - became fundamental both in the theory of mercantilism and in state policy.
Mercantilist policy and mercantilist doctrine also went through two historical stages: early and late mercantilism. This period is also called the period of protectionism. Both stages of mercantilist policies ultimately achieved the accumulation of monetary treasures in the country. However, they had different ways to achieve this goal. The monetary system was guided by measures of a prohibitive, police nature, according to which it was recommended to prohibit the export of money from the country. The manufacturing system abandoned the ban on the export of money from the country and allowed for the expansion of purchases of goods abroad, but subject to a balance of trade, in which the monetary amount of purchases should be less than the amount of sales of their goods. For this purpose, it was proposed to develop those manufactories whose goods find the greatest sales at higher prices abroad. Consequently, representatives of late mercantilism approached the issue of production of goods from the position of interests of foreign trade, that is, the export of their goods. At the same time, they proposed imposing high duties on foreign goods, patronizing the national economy, that is, implementing a policy of protectionism. These goals could only be achieved with the help of the state. Therefore, in order to maintain the monetary and trade balance, all mercantilists were supporters of government intervention in the economic life of the country.
Mercantilists made an attempt to explore the causal connections between individual economic phenomena. However, in the analysis of individual categories of economic science, they stopped only at the external appearance of phenomena. This was explained by the fact that they clarified only the process of circulation of commercial capital, which lies on the surface, and did not look into the depths of the production process.
The mercantilist system did not imagine value other than as represented in money and proceeded from the premise that money represents an exclusive form of wealth, therefore it saw the method of enrichment in the accumulation of precious metals - gold and silver. Mercantilists believed that value is a product of exchange, not production. They proceeded from the limited view that profit is due solely to the process of exchange, that it is explained by the sale of a commodity above its value. Also mistakenly believing that profit does not arise within the country, but appears only in the exchange of goods between countries.
Bibliography
1. Reader on economic theory / comp. Borisov E. F. -M.: Lawyer 2004
2. M.A. Sazhina. G.G. Chibrikov. 2nd edition M.: Norma 2007
3. A.Yu. Mikhailov, ed. A.A. Fofonova St. Petersburg: Economic School 2005
4. Eliseeva E.L. Ronshina N.I. History of economic doctrines. Lecture notes
5. Bulatov A. S. Economics. - M.: BEK Publishing House, 2005
6. Zhuravleva G.P. Economics: Textbook. - M.: Yurist, 2006.
7. Titova N. History of economic teachings. Lecture course
8. Makhovikova, I. N. Baranov - St. Petersburg: St. Petersburg UEF. - Ed. 3rd, revised and additional, 2005.
9 Economic theory of the national economy and the world economy (political economy): a textbook for economics. specialist. universities / ed. A. G. Gryaznova, T. V. Checheleva. - M.: Banks and exchanges: UNITY, 2005.
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General characteristics of mercantilism. Basic economic and behavioral postulates. Understanding the market economy. Criticism of the views of mercantilists by the predecessors of the classical school. The historical place of mercantilism in the development of economic thought.
Introduction 3
1.1. Definition of mercantilism 4
1.2. Early and late mercantilism 6
Chapter 2. Features of mercantilism in England and France.
2.1. Features of mercantilism in England 8
2.1. Features of mercantilism in France 10
Conclusion 13
References 15
Introduction
Before the era of capitalism, economic research was fragmentary in nature, concerned with the analysis of practical economic activity, occasionally illuminated by brilliant guesses regarding the underlying laws of economic processes. The situation changes dramatically with the beginning of the development of capitalist economic relations. This is characterized in Europe in the 15th and 16th centuries. n. e., in the era of great geographical discoveries, in the era of primitive accumulation of capital.
Marx characterized this period as one of the moments in the process of transition from feudalism to capitalism following the great geographical discoveries and called it the period of “primitive accumulation of capital.”
Mercantilism- (from the Italian mercate - merchant, merchant) one of the earliest holistic economic theories, dating back to the 15th - 17th centuries, that is, the period of early capitalism. The mercantilists proceeded from the position that the sphere of circulation plays a dominant role in the economy and in the creation of profit, and the wealth of the nation lies in money.
Relevance of the work. Economic science, as a system of knowledge about its subject and functions, about economic relations, categories and laws, was first formed in the 16th-17th centuries. in the teachings of the mercantilists.
Object of study is a system of economic views on the study of patterns in the sphere of trade and money circulation, and subject- mercantilist views of economists in England and France.
Goal of the work– consider the features of mercantilism in England and France.
The following research methods were used: generalization, analysis, synthesis of the studied literature.
In this work, the first chapter examines the essence of mercantilism, and the second – its features in England and France.
Chapter 1. The essence of mercantilism.
1.1. Definition of mercantilism.
The displacement of natural economic relations by market economic relations covers the historical period of the “transitional time” from approximately the 16th to the 18th centuries. This period in economic literature is usually called the period of mercantilism or the mercantilist system.
The concept of “mercantilism” comes from the Latin word tercari (to trade). In English and French, mercantile means "merchant", and the Italian mercante means "merchant" or "merchant". However, the mercantilist system is a much more complex concept, the emergence of which is closely related to the consequences of the great geographical discoveries, which led to the acceleration of the “initial accumulation of capital” and the emergence of new types of economic entities - owner-entrepreneurs and employees.
Before the Renaissance, European culture had a widespread idea of the conquering hero as the embodiment of all virtues, an ideal to follow. A successful raid on someone else’s, and sometimes one’s own, territory, robbery and ruin, according to the morality of that time, were considered a completely acceptable and legal way to get rich. This tradition, which emerged from antiquity, functioned successfully in the Middle Ages.
The Renaissance gave rise to new approaches to many socio-cultural processes, including the idea of wealth and the sources of its origin. Social ideals have changed; The hero of that time was no longer a conquering warrior, but a successful merchant, artisan, and artist. The theoretical concept that later substantiated this shift in public consciousness was mercantilism.
The external part of the concept of mercantilism is that this theoretical school viewed wealth in the form of a monetary metal with the source of growth in the field of foreign trade. Mercantilism as a specialized part of the social consciousness of that era reflected new stereotypes of thinking that fixed money as the main, and sometimes the only component of material well-being and wealth. But at the same time, the concept of mercantilism was not so primitive; it reflected the essence of not only monetary, but also economic relations of that time.
Mercantilism was a significant breakthrough in the cultural tradition of feudal-fragmented Europe and was an economic and theoretical justification for the process of creating and functioning of nation states on the principles of political absolutism. In accordance with these processes, people living on the territory of a particular state began to be considered as a single social organism (nation, people). Nations compete with each other by entering into economic relations. The most common form of economic relations between states at that time was foreign trade. One nation sold to another nation those goods which it had in abundance, acquiring those goods which it lacked. The money of that time was primarily precious metals, and it was in them that the value of goods was assessed and settlements for trade transactions were made. Therefore, it is natural that the positive result of foreign trade was associated with the excess of exports over imports and was recorded by the concept of a trade surplus.
In addition, mercantilism for the first time defined the managerial functions of the sovereign and ruler. If in the ancient tradition, which continued to be preserved in the early Middle Ages, the sovereign was considered as a ruler, the conqueror of his subjects, who had all rights to their property and even to life, then mercantilism considered the ruler as the supreme manager, the father of the nation, who was obliged to carry out economic policies leading to the enrichment of the nation as a whole. The economic policy of the state, which, according to mercantilists, led to an increase in national wealth, was protectionism, the meaning of which was full support for the domestic merchants in foreign markets and restrictions imposed on foreign merchants in the domestic market. Thanks to such a policy, the competitiveness of the nation should have increased and the production of export-oriented products should have increased. The active trade balance and the influx of gold into the country became an indicator of the effectiveness of state policy and the wisdom of the government.
1.2. Early and late mercantilism.
There are early and late mercantilism.
Early mercantilism arose before the Age of Discovery, and its central idea was that of the “balance of money.” During this period, there was a process of creating centralized states and eliminating feudal fragmentation in Europe. Frequent wars required the creation of regular armies and led to the need for constant replenishment of the state treasury. Therefore, the economic policy of the government during this period had a pronounced fiscal character. Successful tax collection could only be ensured by creating a system in which private individuals were prohibited from exporting precious metals outside the state. Foreign merchants were obliged to spend all the proceeds received from the sale of their goods on the purchase of local goods; the issue of money was declared a state monopoly. To attract money from abroad, governments resorted to “defacement” of coins by reducing their weight or fineness while maintaining the denomination, which led to the depreciation of money. It was believed that as a result of depreciation, foreigners would be able to purchase more local goods with their money and would therefore be motivated to recoin their money into another country's devalued money.
As a result of the Great Geographical Discoveries, cheap silver and gold poured into Europe, primarily through Spain. It would seem that the economic ideal has been achieved. But the more monetary metal entered European markets, the faster the process of their depreciation went. A constant rise in prices for goods began, which gradually strengthened the economic position of the productive strata of society (artisans, peasants) and weakened the position of the noble and military class, which received salaries in the form of depreciating money.
Late mercantilism places the idea of a trade balance at the forefront; the fiscal orientation of economic policy is replaced by a policy based on economic considerations. It was believed that the state became richer, the greater the difference between the cost of exported and imported goods. This situation could be achieved in two ways. Firstly, the export of finished products was encouraged and the export of raw materials and the import of luxury goods was limited. Secondly, the development of intermediary trade was stimulated, for which the export of money abroad was allowed. At the same time, it was considered necessary to buy as cheaply as possible in some countries and sell as expensively as possible in others. As part of this approach, high import duties were established, export premiums were paid, governments sought to ensure the security of foreign trade communications, provided various privileges to trading companies, and issued government subsidies for the development of export-oriented and import-substituting industries.
Chapter 2. Features of mercantilism in England and France.
2.1. Features of mercantilism in England.
In England, mercantilism turned out to be much more “fruitful” than in France. The main successes of this country's protectionist policy in the field of trade and industry in the 17th century. usually associated with the name of Thomas Men, one of the leaders of the East India Company. The essence of mercantilism is most accurately and concisely set out in his book “The Wealth of England in Foreign Trade or the Balance of Our Foreign Trade, as the Principle of Our Wealth” (1664). The author sees wealth in monetary terms - in gold and silver. The country must enrich itself through trade, ensuring that the export of goods exceeds their import. They saw the development of production as a way to expand trade.
W. Petty (1 had a doctorate in physics, was a professor of music and anatomy and, at the same time, the first professional economist. The wealth of a ruler, in his opinion, consists of three main parts: 1) the wealth of all his subjects; 2) part of this wealth that goes to the common good; 3) parts of this part, which the ruler disposes of at his own discretion. Therefore, the wealth of all subjects is the most important wealth. The more significant it is, the more funds can be collected in the form of taxes, the stronger the state and the ruler himself.
At the same time, money should not lie idle, but contribute to the development of production. Therefore, it cannot be said that a country is poorer the less money it has in the form of reserves. She may be like a successful person who keeps little spare money with him, but constantly turns it into various goods with great benefit to himself. Thus, the wealth of England is not only money, but also land, iron, timber, grain, etc. According to his calculations, the amount of money in England does not exceed 3% of the country’s total wealth.
The central economic concept, according to Petty, is the “natural price” - the cost determined by the time spent producing a good.
One of the main questions for economists of that time was: what is the price of land? Since, Petty said, land is not a product of labor, it is a special commodity, the price of which depends on the income from the land.
Natural price of land = annual rent i x 21 years.
He understands land rent as a surplus obtained after deducting the costs of seeds and maintenance of workers.
Money rent is equal to interest. The amount of interest depends on the demand for money and the supply of money and should not be regulated by law. There should not be too much money in circulation. They are like fat: every body needs fat, but too much fat is a disease.
The name Petty is also associated with the creation of economic statistics (political arithmetic) and methods for calculating national income.
John Locke (1In his opinion, a country that does not have mines can become rich only in two ways: conquest and trade. He attempted to separate “the natural value of money, expressed in its ability to generate an annual income in the form of interest,” and exchange value (purchase value the power of money), which “depends only on the abundance or shortage of money in relation to the abundance or shortage of goods, and not on the amount of interest.” This difference turned out to be very important for the subsequent development of the theory of money.
The ratio of the amount of money to goods is determined by commodity prices, and not only the nominal amount of money matters, but also the speed of its circulation (the greater the speed of circulation of money, the less of it is required for purchases and sales of the same mass of goods). The increase in the quantity of money (increase in the amount of gold and silver after the discovery of America) led not only to an increase in prices, but also to a decrease in the interest rate.
Considering foreign trade the main means of increasing wealth, Locke believed that the main source of wealth was labor. Nature provides only raw materials, and they are processed through labor to turn them into useful things. Therefore, goods that are incomparable in their properties can be compared based on differences in value, most of which is “obtained through human labor.”
2.2. Features of mercantilism in France.
The concept of late mercantilism was entirely focused on the practice of economic life - mainly on the sphere of circulation. The influence of mercantilists on other areas of the economy was not always adequate. An example would be France, where the greatest active proponent of the policy of protectionism in the 17th Art. , is the Minister of Finance Jean Baptiste Colbert. Under him, a powerful network of manufactories was created in industry, which provided funds for the royal court. At the same time, by prohibiting the import of bread and its uncontrolled export, the development of farming is restrained. This circumstance ultimately explains the “narrowness” of the French domestic market at that time in comparison with its long-time rival, England. Subsequently, French mercantilism for this reason began to be called Calbertism, and the so-called teaching of the physiocrats became a kind of French school within the framework of classical political economy.
The theoretical foundations of mercantilism in France were laid in the Treatise of Political Economy (1615), authored by Antoine Montchretien. He introduced the term “political economy” into socio-economic literature. The author of the “Treatise...” considered merchants to be the most useful, and characterized trade as the goal of a craft. He considered active government intervention in the economy as the most important factor in the accumulation, strengthening and development of the country's economy.
The scientist recommended developing manufacturing, creating craft schools, improving the quality of products, expanding trade in nationally produced goods, while displacing foreign merchants, whom he compared to a pump that pumps wealth out of the country.
But he presented political economy as a set of rules of economic activity. Montchretien argued that:
1) “People’s happiness is in wealth, and wealth is in work.” But wealth is expressed in gold and silver.
2) Luxury is legitimate only when consuming local products, when their producers get jobs and “the profits remain within the country.”
3) Competition is harmful and must be avoided and prevented.
4) Merchants are “more than helpful.” Trade is "the chief purpose of the various trades"; trading profit is legitimate, it compensates for the risk; “gold turned out to be more powerful than iron.”
5) State power must ensure the monopolies of domestic merchants within the country and in foreign markets.
For the effectiveness of foreign trade, according to Montchretien, large trading companies (East Indies, West Indies, etc.) must be created. The charter of such a company could not allow internal competition, and the privilege granted to it by the state excluded other traders from that country from entering the relevant market. In competition with similar companies in other countries, such means as war and privateering are possible.
At the same time, although Montchretien proposed promoting the expansion of foreign trade, he had no justification for the idea of a “balance of trade.” Traces of monetarism were preserved in his work (in an extremely broad interpretation of the prerogatives of the state, in a crude solution to the issue of the fight against foreigners).
Montchretien's problem of capital accumulation was replaced by the problem of the rise of France. But contrary to mercantilism, paramount importance was attached to “natural wealth” (bread, salt, wine, etc.), since it is not the amount of gold and silver that makes a state rich, but “the availability of items necessary for life and clothing.” The state must take care of the peasants. Such recommendations were impossible for English mercantilism.
Consistent mercantilist policies in France during the period of Richelieu and Colbert led to a deterioration in the situation in the field of agriculture and crafts, oriented towards local needs, and generated a constant increase in tax pressure on most of French society. To ensure ever-increasing government spending, sooner or later the government was forced to switch to the use of paper money, which led to the rapid depreciation of paper money and the breakdown of the economic system.
John Law (1, a supporter of the quantity theory of money, known primarily as the organizer of the issue of paper money in France in 1719, when they ousted metallic money from circulation.
According to Lowe, silver, like any other commodity, has its “natural price.” However, when silver is minted into coins, it is given additional (artificial) value. In this sense, the issue of money generates profit. These profits will only increase if silver coins are replaced by paper money, which has no natural value. And the profit from their introduction, as well as the value of the paper money itself, will be fully preserved if their issue is strictly regulated in accordance with the needs of circulation and trade.
Unfortunately, Lowe's criterion for issuing the "necessary" amount of paper money was left vague. They began to be produced in excess quantities, which led to the collapse of the country's monetary circulation.
Conclusion
The general assessment of the significance of mercantilists in the history of economic views is very contradictory.
1. Mercantilists formulated the doctrine of a trade surplus. Just like an individual, the state must spend less than it receives. Then wealth (gold and silver) will accumulate in the country.
2. The contradictory views of the mercantilists were expressed in the increase in economic activity as a zero-sum game (the gain of one is the loss of another), the tacit assumption of limited consumption, the weakness of monetary incentives - these concepts were inherent in the pre-industrial economy, accustomed to insignificant growth in production and population. At a time when profits from foreign trade were accidental - such is the era of pirate imperialism, when internal trade was limited to a few localities and was carried out spontaneously, regular employment and factory discipline were practically unknown - this may be natural from the thought, as if the policy of "ruin neighbor" will enrich the nation, that the trade surplus accommodates a net premium to the volume of sales on the limited domestic market, and that high wages will reduce the supply of labor. This kind of idea about economic activity is so firmly rooted in the real world that it is unlikely that statements were required, and only they explain why smart people could adhere to the theory put forward in that period. The explanation for this, according to scientists, lies in a protectionist mood, combined with an erroneous opinion about wealth and money.
3. The mistake of the mercantilists was only in the assumption that it was possible to maintain a trade surplus for a long time without harmful consequences for the national economy as a whole.
4. The concern of mercantilists with the influx of gold into the country can be understood as a not entirely clear understanding of the connection between an increase in the supply of money and a decrease in interest rates. When an economy suffers from lack of demand and falling prices, a trade surplus (the excess of exports over imports) supports prices, and an influx of gold lowers interest rates and thereby stimulates investment and employment.
5. In the situation of the pre-industrial economy, mercantilists did not have to face the problems of regular employment of the workforce, or the organization of the then unknown factory production. Their main demands invariably remained the excess of exports over imports, stimulation of the export of capital from the country and the import of gold and luxury goods from abroad, and the prevention of foreign investment into the national economy.
6. Theoretical attitudes based on protectionist sentiments in the field of state regulation of foreign trade, the naive identification of money and wealth, the full approval of public works and other postulates of the mercantilists actually lead to conclusions that are absurd from the standpoint of today’s economic science about the “obligation” of the state to provide the population with workers in some places, adhere to the policy of “beggar your neighbor” for the sake of enriching your own people, etc.
7. Mercantilism has enriched the history of economic teachings not only with the concept of the general commercialization of economic life and the large-scale participation of state structures in it. We are talking, of course, about economic science, which, after the publication of the Treatise of Political Economy by the French mercantilist Antoine Montchretien in 1615, was worthily called nothing less than POLITICAL ECONOMY for almost four centuries.
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Mercantilism is the first independent direction of economic thought, which during the XV-XVII centuries. became dominant in economic science And practice European countries. Term mercantilism comes from the Italian “mercante” - merchant, merchant and means that the main the object of attention of mercantilism is trade and its role in creating the country's wealth. The emergence and content of the concept of mercantilism was associated with significant changes that took place during this era in the economic, political, and scientific life of Western European countries.
Characteristics of the era. Economy of European states in the 15th-17th centuries. characterized as a period initial capital accumulation. This term was introduced into scientific circulation by A. Smith and meant by it the creation of prerequisites for the capitalist mode of production. First of all, we are talking about the formation of the labor and capital markets. In England, a process of enclosure and displacement of peasants from the agrarian sphere is developing, who, having lost their land plots, went to the city, creating cheap labor market necessary for the development of capitalist entrepreneurship. The city's economy, manufacturing, and trade developed rapidly, which required a significant amount of money.
The possibilities of capitalist entrepreneurship are hampered by a shortage of funds (precious metals). Main source of capital increase in this era it becomes international trade. Great geographical discoveries, the development of new territories and the formation of colonies led to the rapid development of trade, trade turnover and trade profits increased, which created unusually favorable opportunities for accumulation of money capital in European countries and later its productive use. The richest in the XVI-XVII centuries. became those countries that conducted an active colonial policy and foreign trade: Portugal, Spain, then France, Holland, England.
Exactly sphere of circulation during this period it became the predominant sphere of activity of capital, And trade was the main source of increasing wealth, therefore it became the main object of study and generalization of the phenomena of economic life.
The political system is changing - in the 15th century, centralized states with absolute monarchies were established in almost all European countries. State in need of significant funds, begins to play an active role in the economy, speaking first on the side of commercial and then industrial capital.
Important changes are also taking place in scientific life. The struggle for the liberation of science from the influence of theology begins. Developing experimental the science. It provides the first practical results, which generate enormous optimism regarding the ability of the human mind to control the world. Formed empirical method analysis, based not on abstract reasoning, but on experience. In particular, the English philosopher Francis Bacon (1561-1626) made a great contribution to the development of the new method. In general, science and thinking are gaining pragmatic(practical) nature, they abandon the study of abstract categories and turn to everyday problems.
Thus, the accumulation of capital through the development of foreign trade, the performance of economic functions by the government, and the practical direction in science become characteristic features of this era and are reflected in mercantilism belief system .
Mercantilism becomes theoretical concept this time. An extensive economic literature arose, which considered the problem of wealth and its increase through foreign trade and, in accordance with the successes of experimental science, set as its goal determining the nature and objectives of the state’s economic policy under these conditions.
The main representatives of mercantilism were: in Italy - Gabriel Scarufi (1519-1584), Antonio Serra (16th–17th centuries), Bernardo Davanzati (1529-1606); in England - William Stafford (1554-1612), Thomas Maine (1571-1641), Dudley North (1641-1691); in France - Jean Bodin (1530-1596), Antoine de Montchretien (1575-1621), Jean Baptiste Colbert (1619-1683).
1) the ideologists of mercantilism are convinced that it is money- gold, silver, treasures of any kind are economic form of public wealth ; at the same time, they identify the wealth of the nation with the wealth of the state treasury; They saw the method of enrichment as the accumulation of precious metals in the country - gold and silver;
2) main source of wealth , according to mercantilists, is foreign trade, which contributes to the influx of gold and silver into the country (and into the state treasury); they recommend buying cheaper and selling more expensive and advocate the country's participation in foreign trade;
3) mercantilists justify the need to regulate foreign trade, conduct state protectionist policies , on the effectiveness of which the country’s success in foreign trade and the growth of the country’s monetary wealth depend.
Subject and method in the theory of mercantilism. Object of study mercantilism is common good(identified with the wealth of the state treasury), and not the benefit of the individual. It was the mercantilists who introduced the concept of “ national wealth " The individualization of the concept of “wealth” will occur during the emergence of classical economic theory. The main task The goal that representatives of mercantilism set for themselves was the search for means of enriching the nation. Understanding wealth mercantilists viewed its growth as the presence of money in the country as a result of exchange rather than production. Profit is a product of exchange and is explained by the sale of goods higher than its cost. Mercantilists believed that profit (increase in wealth) does not arise within the country, it appears in the exchange of goods between countries.
Since foreign trade was considered the main source of enrichment, it was sphere of circulation is the main subject analysis. The main areas of research concerned public policy on organizing foreign and domestic trade, regulating exchange rates and cash flows, organizing credit. Attention was also paid to the production sector, but solely due to the fact that this area is the basis for the development of effective trade.
Research method. Since the object of study is universal, national wealth, mercantilism is characterized by macroeconomic approach to the analysis of economic phenomena, that is, all problems are considered macro level, at the level of the national economy, and not of an individual private economy.
The most important feature of the mercantilism method is empirical direction of research. This is manifested, on the one hand, in the refusal to analyze abstract concepts (such as “fair price”), on the other hand, in the formulation and solution of purely practical issues, closely related to current economic policy. In this regard, the nature of the conclusions changes: they lose their normative character, characteristic of the teachings of the canonists, and acquire purely pragmatic orientation related to solving the problem of enriching the nation.
This feature of mercantilism is reflected in its duality . Mercantilism is direction of economic science and at the same time it direction of economic policy. Theoretical concept mercantilism is based on the premise that the welfare of a country depends on the economic policies of the government, developed in detail in accordance with the existing problems. Therefore, the recommendations of mercantilists contain many specific activities, instructions, and guidelines. Economic policy mercantilism includes protectionist government measures aimed at increase in a country's monetary wealth: encouraging exports, limiting imports, developing domestic industrial production through the import of cheap raw materials, government financing of production, etc.
Protectionist policy. Mercantilists assign to the state active role in economics and believe protectionist policies government is an important condition for the growth of the nation's wealth. They first identified administrative functions of the state, which was obliged with the help protectionist measures increase the competitiveness of your country in foreign trade. The methods of protectionism changed: from purely administrative aimed at keeping money in the country, at the first stage of mercantilism until support export industry and the creation of state-owned manufactories at the second stage.
This approach logically follows from the general views of mercantilists. Firstly, he is a consequence of the macroeconomic method inherent in mercantilism. Mercantilists explore issues of “national wealth,” which cannot be the result of the actions of individual individuals, but is the result of targeted state policy.
Secondly, mercantilism not typical clearly expressed the idea of objectivity of economic laws. Based on the achievements of experimental science, mercantilism attaches great importance strong-willed purposeful actions of people and recognizes the possibility of changes in the surrounding world under the influence of active government intervention. In particular, it was argued that the mere availability of natural resources and precious metals does not ensure the prosperity of a nation. The main thing is the ruler’s ability to extract profit from this. Only on late stage The first ideas about self-regulation of the economic system begin to form. Understanding arises economic law, irremovable by any human will. This idea is most clearly reflected in the work of D. Nourse “On Coin”, as well as in the treatises of T. Maine, where he points out the harmful effects of government regulation of exchange rates.
In accordance with the characteristics of the subject and method of mercantilism, economic science receives a new name - “ political Economy " It appeared with the publication of A. de Montchretien’s book “Treatise on Political Economy” in 1615. The term “political economy” (polis - state, oikos - economy, nomos - law) means that it is the science of the laws of development public,state economy. The very name of the science emphasizes the fact that economics is not an independent field of activity, its development is associated with state policy, and the state acts as the most important subject of the economy.
Mercantilists made an attempt to explore cause-and-effect connections between individual economic phenomena. However, in the analysis of individual categories of economic science, they stopped at external visibility of phenomena . This was explained by the fact that they studied only the process of circulation of commercial capital, which lies on the surface, without turning to the analysis of the production process. Therefore mercantilism did not become a real science due to its historical limitations: this theory contained only an analysis of the sphere of exchange and circulation. Whereas real science explores the essence of phenomena and therefore moves from the analysis of the circulation of capital to the analysis of production. The views of mercantilists form the background to classical political economy.
Economic teachings of the Ancient World and the Middle Ages
1. The history of economic doctrines dates back to the period of occurrence: simple
1) natural economic ideology
2) mercantilist ideology
3) the ideology of classical political economy
2. Studying the history of economic doctrines reveals that economic science is characterized by: average
1) unidirectional development
2) non-unidirectional development
3) rejection of “old” ideas and theories
3. Studying the history of economic doctrines allows us to better understand the development of economic science: simple
1) past
2) present
3) past and present
4. The subject of studying the history of economic doctrines covers economic theories: simple
1) individual economists
2) schools of economic thought
3) individual economists and schools of economic thought
5. Representatives of economic thought of the pre-market era idealized: simple
1) money economy
2) natural-economic relations
3) liberal market relations
4) large trade
5) usurious transactions
6. The final stage of the era of economic teachings of the pre-market economy was the stage: simple
1) mercantilism
2) physiocratic doctrine
3) Smithian economic doctrine
7. The displacement of the previous stage or direction of economic thought by a new (alternative) stage or direction in the history of economic teachings occurs: average
1) upon completion of this stage or direction
2) through a time lag after the completion of this stage or direction
3) even before the end of the existence of one or another stage or direction
8. The stage of idealization of the principles of “pure” economic science took place in the era of economic teachings: average
1) pre-market economy
2) unregulated market economy
3) regulated market economy
9. The laws of Hammurabi regulated debt slavery with the purpose of:average
1) elimination of the slavery system
2) improving the economic situation of slaves
3) a speedy transition to a market economy
4) ensuring the growth of tax revenues to the treasury
5) prevent the destruction of the foundations of natural economy
10. Aristotle refers to the sphere of chrematistics:average
1) agriculture
2) craft
3) beekeeping
4) usury and trade and intermediary operations
5) small trade
11. In accordance with the economic views of Aristotle and F. Aquinas, money is:simple
1) a completely useless product
2) the result of an agreement between people
3) the only manifestation of the wealth of a person and a state
4) a technical tool that facilitates exchange
5) spontaneously arising goods
12. According to the concept of “fair price” by F. Aquinas, the cost (value) of a product is based on:average
1) moral principle
2) cost principle
3) moral and ethical principle
4) costly and moral and ethical principle at the same time
5) principle of limit analysis
Topic 2. Mercantilism - the first concept of market economic theory
1. At the stage of the priority role in the economic science of mercantilism, the concept dominated:simple
1) protectionism
2) economic liberalism
3) social control of society over the economy
2. The subject of the study of mercantilism is:simple
1) sphere of circulation (consumption)
2) sphere of production (supplies)
3) sphere of agricultural production
4) the sphere of circulation and the sphere of production at the same time
5) a combination of economic and non-economic factors
3. The priority method of economic analysis of mercantilism is: simple
1) empirical method
2) causal method
3) functional method
4) historical method
5) mathematical method
4. BAccording to the economic views of mercantilists, wealth is:simple
1. gold and silver money
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