Explain England’s Treasure By Foreign Trade,(first published in 1664).
Explain England’s Treasure By Foreign Trade,
(first published in 1664).
Mercantilism was a popular economic system in England in the seventeenth and eighteenth century. The colonial territories of the British became revenue earners. An English writer on the subject of Economics wrote extensively on mercantilism and made a compelling argument on the theory of the balance of trade.
Thomas Mun is credited being the author of England's Treasure by Forraign trade. The book is also known as The balance of our foreign trade is the rule of our treasure.
Thomas Mun was part of the East India Company and was appointed in 1622 to the standing commission on trade. He asserted that a country's gold reserves are the main parameter of its wealth and that governments should monitor trade to produce more of exports over imports in order to get more gold for the nation.
In his book aim England's Treasure by Forraign Trade Mun, asserts that trade should be balanced not jointly with each country but overall. He states that spending specie to buy valuable goods is a way of acquiring more specie. He maintains that it is wise to gather wealth but it should be on genuine and real merchandise such as ships and stores, as well as in specie. Mun comprehends that the trade balance varied from the payments balance (on current account) because of payments like those for cargo and shipping. He was keen on the most proficient method to figure the balance of payments, as were also many early mercantilists.
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