Question

What does the author mean by "During the 1600’s, Europe’s trading nations based their policies on an economic theory known as mercantilism . This theory held that a nation became powerful by building up its supply of gold and silver, called bullion . One merchant described the importance of bullion this was"[It is] the sinews of all government, it gives pulse, its movement"?

Answer 1

Mercantilism was an economic theory followed by Europe's trading nations during the 1600s, which emphasized the accumulation of gold and silver as the basis of a nation's power and wealth.

Step-by-step explanation:

Mercantilism was an economic theory followed by Europe's trading nations during the 1600s. According to this theory, a nation's power and wealth were determined by the amount of gold and silver, known as bullion, it possessed. The theory held that a favorable balance of trade, where a country exports goods of greater value than it imports, was necessary to amass wealth. This theory believed that there was a finite amount of gold and silver in the world, meaning that a gain for one nation would result in a loss for another. The accumulation of bullion was viewed as essential for the growth and military strength of a nation.