What were the key features of the mercantilist system? Explain how it was effectively overhelmed by the rise of market-based economies.

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The Answer is The key features of the mercantilist system included a focus on accumulating wealth through a favorable balance of trade, government intervention in the economy through tariffs and subsidies, and the establishment of colonies to provide raw materials and serve as markets for finished goods. Mercantilism also emphasized the accumulation of gold and silver as a measure of a nation's wealth.

However, the rise of market-based economies effectively overwhelmed the mercantilist system in several ways. First, the Industrial Revolution led to the development of new technologies and increased productivity, which allowed for the mass production of goods and the expansion of trade. This shift towards market-based economies allowed for greater specialization and efficiency in production, leading to increased wealth and economic growth.

Additionally, the rise of free trade and the dismantling of trade barriers allowed for greater competition and access to a wider range of goods and services. This shift towards market-based economies also led to the development of financial markets and the establishment of central banks, which provided greater access to capital and facilitated investment and economic growth.

Furthermore, the shift towards market-based economies also led to the development of new economic theories, such as classical economics and later, neoclassical economics, which emphasized the importance of free markets and individual decision-making. These theories challenged the interventionist policies of mercantilism and advocated for a more laissez-faire approach to economic policy.

Overall, the rise of market-based economies effectively overwhelmed the mercantilist system by promoting greater economic efficiency, competition, and innovation, and by challenging the interventionist policies of mercantilism in favor of free markets and individual decision-making.

What Were the Key Features of the Mercantilist System? Explain