Mercantilism vs Physiocracy:

The Brief Intro,

Contribution, Pros & Cons

Daniya Naidu
Asther
 Mercantilism

Thomus Mun Adam Smith

Creator of Mercantilist The Wealth of Nation
system
 Characteristic
Wealth of the world is static
Wealth = Gold & Silver
Export> Import
Large & Hardworking population
Strong Government
 Contribution
France
Netherland
England
 Pros & Cons
Unemployment Rate reduce
Promote trade deficit for foreign countries
Culture exchange help to promote trade
Local raw resource is limited
Implementing this system is quite inefficiency
 Conclusion
They failed to realized that money is the
medium of exchange
Over emphasized on the importance of
favorable trade
Assumed that agriculture is the only productive
activity
Idea of one nation gain and another nation loss
 Physiocracy
Proprietary
Productive
Sterile

Characteristic
Natural order
Individualism and Laissez faire
Private Property
 Physiocracy
Contribution
China

Cons
Unconvincing strategy