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Mercantilism :money_with_wings:: - Coggle Diagram
Mercantilism :money_with_wings::
Definition and Key Idea :bulb::
Export > Import - Gov't Control.
National wealth = Gold/Silver.
Main Advocates and Proponents :silhouettes:
Jean-Baptiste Colbert
Philipp von Hörnigk
Thomas Mun
Assumptions and Key Concepts :thinking_face:
Trade Surplus
Bullionism
Gov't Intervention
Colonialism
Protectionism
Real-World Examples
:world_map:: :pen:
British Colonialism
French Mercantilism
(Arguably) Modern China
Strengths and Weaknesses
:check: :green_cross:
Strengths :white_flag::
National Unity
Economic Growth
Industry Development
Weaknesses :red_flag:
Trade Wars
Colonial Exploitation
Limited Choice
Inefficiency
Connect with Other Theories :notebook_with_decorative_cover::
Absolute Advantage :spiral_note_pad:
Relationship: Opposite
Key Point: Critique of mercantilism, specialization for efficiency.
Comparative Advantage :spiral_note_pad:
Relationship: Challenges
Key Point: Specialization based on opportunity cost, benefits from trade even without absolute advantage.
Heckscher-Ohlin Theory :spiral_note_pad:
Relationship: Nuanced View
Key Point: Trade based on factor endowments (labor, capital), less government control.
New Trade Theory :spiral_note_pad:
Relationship: Departs
Key Point: Economies of scale, strategic advantages, government role in promoting specific industries.
Porter's Diamond :spiral_note_pad:
Relationship: Detailed Analysis
Key Point: Competitive advantages of industries, innovation, competition, productivity.
Balance of Payments :spiral_note_pad:
Relationship: Directly Concerned
Key Point: Trade surplus as a goal, modern view favors balanced BOP.