MT220 unit 5 assignment

Mercantilism

Chad Dent

Kaplan University

Professor Fail

MT220-01

12/12/2017

Mercantilism is defined as an economic policy which is characterized with the creation of the wealth of a nation through use of trade policies. This is mainly done on order to maximize the economic potential of a given country with a need to make sure that all the economic variables are put in place. This is also done with a view of increasing the market potential by making sure that there is combination of the market capitals that are necessary for the realization of economic objectivities is also done by taking into consideration the prevailing economic and political environment that is necessary for the growth of the policies in the long run, (Zoellick, 2005).

. There is a need to understand that of late china is pursuing the mercantilism policy in the country because of the economic reforms that have been constant in the country. That has been a process that has been necessitated by the need to bring more of the economic forwardness to make sure that the economy does remain in the same place as the way it has been. This has really called for the collaboration of all the state organs with a view of ensuring that there is more of the implementation of the enacted policies to bring more of economic freedom in the country (Magnusson,2012). 

The economic policies being pursued by the Chinese economy have more of the mercantilism principles that are necessary for making the economy to grow. There has been a constant combination of efforts to ensure that the move is really actualized because of the urgency of the process. This has called for rampant economic policies that have really necessitated the economic policy planning process to be fastened with a need to make sure that the environment is favorable for such operations. The mercantilism policies in the Chinese economy has really involved the standardization of the policies of the currency in place. This has helped in bringing some form of balance of trade policies that have rally enabled the state to have some favorable terms in the whole trading process. The move by the Chinese government to diversify the economic objectives has been a good one to ensure that all the operationalization mechanisms are really working for the betterment of the overall trade policies. This is necessary because the trade policies are the key drivers of making the economy to be advanced in a bid to ensure that there a balance in terms of the economic planning, (Zoellick, 2005).

. Mercantilism in china can reduce the poverty levels through empowerment of the people to be self-dependent through trade. This is because the financial freedom that the people can receive enables them to be self-independent. Through trade empowerment, they are at least able to find means of surviving the hard-economic times that have existed of late. The move to reduce poverty in most of the states in china is instrumental in ensuring that they the economic risks are reduced that makes it possible for people to be self-independent. This tends to bring economic freedom to most of the people who are poverty stricken. The mercantilism policies that have been put in place are necessary for making the work of bringing the economy back to normal. This is because the need for stability in china doesn’t need to take long as far as economic organization is concerned (Zoellick, 2005).

On the other hand, United States should also act in making use of the mercantilism policies. Trade I one of the key drivers of economic development. Through trade, it becomes very easy to ensure that the economic buttons that need adjustments are sorted. Trade is a key empowerment to the people in general because their welfare is sorted. This is because self-reliance is promoted through trade since they have the advantage of having some economic activity to keep them occupied. It promotes a considerable number of the people in the economy to have something to keep them occupied. This has happened across the globe because the entire process is distributed across all the countries in the world. It has been of help to all the states that have values of economic policies because at the end of it all the states need to have some economic freedom (Heckscher, 2013). 

In the United States of America for instance, there has been much emphasis on the trade policies aimed at making the economy move forward. This is to mean that the economy has much been relying on the trade policies as a boost to the economic development that has been essential for its growth. This has gone a large way in ensuring that the policies favor the people of the state because of the need to bring some sort of growth in the overall economy. The process of achieving full force mercantilism has really made the boosting mode because of the much-needed economic reforms that are necessary for boosting the economy in the long run. Therefore, mercantilism is a good policy that has really helped the united states of America based on the advantages that the policy has had to the people and the economy at large (Uysal,2014).

References

Huckster, E. F. (2013). Mercantilism. Routledge.

Zoellick, R. B. (2005). Whither China: from membership to responsibility? NBR ANALYSIS, 16(4), 5.

Holslag, J. (2006). China's new mercantilism in Central Africa. African and Asian Studies, 5(2), 133-169.

Magnusson, L. (Ed.). (2012). Mercantilist economics (Vol. 33). Springer Science & Business Media.

Uysal, G. (2014). Neo-Mercantilism theory: National currency and IMF. In Proceedings from 13th Euro Asia Business and Economic Conference, Bilgi University, Istanbul.

Chad,

Thanks for your work on this Unit 5 Assignment. It asked you to read the following:

Zip-6 management has been approached with a proposition to buy out a Venezuelan soft drink manufacturer and bottler. The selling price appears to be slightly below book value for the assets. You have been retained as a consultant to investigate the legal, political, and economic climate in Venezuela and then make a recommendation. This Assignment asks you to: