Mercantlism+vs+Free+Trade

Allan Tuquero Compare and contrast mercantilism and free trade. Include pros and cons and specific examples.

Mercantilism Free-Trade Comparing
 * Political economy
 * restricted imports, but encouraged exports
 * Used from 1500s-1700s
 * Served interest of merchants
 * Served Interest of the British East India Company and was protected by the state
 * government provided capital for local industries, establish monopolies over local and colonial markets, and grant pensions to successful producers
 * government forebode export of tools, capital equipment, skilled labor
 * Adam Smith idea man
 * Government should not interfere with the economy
 * Import things you are not specialized in
 * America imported skilled labor from Britain
 * Export things you are specialized in
 * America exported agricultural products to European countries
 * Mercantilism worked well for British Empire with British East India Trading Company
 * East India Trading Company allowed for minimal imports and maximum exports
 * Other European countries suffered, many goods were to expensive and living conditions went down
 * Free Trade is seen the most in America
 * In colonial America factories from the North traded manufactured goods to the South for unprocessed goods
 * Free trade among states allowed America's economy to outgrow Europe's economy

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