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But the reason behind this is to centralize the power of Spain and to finance the defense of the Spain in impending wars.
Spain opted for a more centralized economy, with the motherland benefiting from its colonies. Among the changes that were implemented in the its colonies in the Latin America included reviving of the mining industry and establishment of Royal Mining Tribunal, tobacco monopoly and this also included monopoly of other industries such as sulphur, saltpeter, and playing cards and comercio libre or free trade within the Spanish empire, which is the most important among all the Bourbon reforms.
It was a long and steady upward development of Spain because the reforms failed to address the real problems Spain was facing politically and socially. Its colonies in the Americas were also struggling for independence, which would erupt in the years to come as inspired...
The initial reforms made by the Bourbon kings made these colonies to work for the motherland economically. These problems and piracy in some colonies impeded the fast development that these reforms were able to bring.
Mercantilism was eventually removed to give way to a more free trade between Spain and its colonies, with Mexico and Venezuela being included afterwards. This allowed colonies to have a widespread exchange of goods with each other and the motherland. These move by Spain showed an economic increase in terms of agriculture and commerce. Even in Spanish America, there was an upsurge agriculturally and in the mining industry. However, these reforms were not of much help in these colonies, as there were a growing unrest and clamor for independence which would later explode, and cause Spain to lose some of its profitable colonies in the West.
Therefore, a country which is able to produce one good with a lower opportunity cost than another country, should specialize in producing that good which will turn into a competitive advantage. However, when assessing this theory at the level of international trade, it is harder to depict the competitive advantages. The model may seem to be unrealistic. The resources employed in real world are not restrained to labor and the
Mercantilists vs. Physiocrats Between the 16th and the 18th centuries, the states of Western Europe were torn between two economic philosophies, that of mercantilism and the physiocrat's doctrine, the former of which dominated the latter in terms of the actual policies of the most powerful nations of these centuries such as Great Britain and Spain. The main difference between these the economic doctrines of mercantilism and physiocratism were the levels of
mechanics of the mercantilist doctrine from the incipit of the early modern period in Europe, with special focus on the role of the North American colonies in the British mercantilist endeavors. Mercantilism was the leading economical belief system to support the attempts of regimes and great European powers of the 17th century to organize their economic existence. The reasons standing behind mercantilism originated from the need to provide a solid
Because under the first Navigation Act" all American exports had to pass through British ports, and other foreign traders were not allowed to come into American ports, the higher price of imports hurt most American consumers and American businesses. On page 16 Newton quotes from a book by Jeremy Atack and Peter Passell: "Americans paid higher prices and earned smaller incomes than would have been the case if they had
Thus, the ideas of mercantilism contributed directly to colonialism and a host of colonial wars and conflicts. No mercantilist state was averse to expanding into the markets of any other nation. Rather the goal was to contain as much of the production and trade within one's own borders. War was a natural consequence of each nation attempting to control as much of a finite supply of wealth as it possibly
Charles Van Doren has concluded that the Copernican Revolution is actually the Galilean Revolution because of the scale of change introduced by Galileo's work. The technological innovation of the Renaissance era started with the invention of the printing press (the Renaissance). Even though the printing press, a mechanical device for printing multiple copies of a text on sheets of paper, was first invented in China, it was reinvented in the