POLI 441 Chapter Notes - Chapter Irwin: Mercantilism, Free Trade, Comparative Advantage
2 Oct 2018
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16th century england saw discourse of economic question emerge beyond theological or moral question. Economic policy and their implications where regarded as worthy of study on their own for first time. Sir thomas smith proposed protecting domestic producers and taxing luxury imports, "pay more to our own people than to strangers" regulate goods exported refined and reimported, such things deplete the treasure of the realm. Maintaining a balance of trade and manufacturing raw materials at home key planks, criticism of important luxury goods and employment in import-competing sectors. Move for skepticism of merchants and traders to praise for bringing wealth and riches to nations as international trade began and expanded in 17th century. Government direction to increase trade or prevent its deterioration. Trade was praised as the road to prosperity, literally producing the wealth of nations. Trade to another commonwealth is the gain of the nation, within the commonwealth there is no net transfer for the nation.
