Contextualization

Mercantilism is an economic theory that emerged in the sixteenth century Europe and dominated there until the late eighteenth century. It advocated for a national economic policy aiming to accumulate monetary reserves through a positive balance of trade. The central tenet of mercantilism was the belief that a nation’s wealth and power are best served through high economic activity, particularly by exporting more than what is imported. This system saw a boom during the Age of Exploration when European powers sought new markets for trade and establish colonies.

Bullionism, a derivative of mercantilism, held that the prosperity of a nation was dependent on the amount of gold and silver it holds. Nations, thus, pursued policies to sell more goods to other countries as compared to their purchases in order to gather precious metals. Concepts such as protectionism, colonialism, and capitalism can be better understood when viewed from the prism of mercantilism.

Importance of Mercantilism

The mercantilism-led economic policies played a key role in shaping the world as we know it. It led to the formation of powerful empires through colonization, where colonies served as a source of raw materials and also as markets for finished goods. It fostered a competitive spirit among nations which in turn drove the scientific and technological advancements.

Further, mercantilism laid the seeds for modern capitalism. The principles of mercantilism, such as the role of the state in controlling the economy, concepts of supply and demand, and promoting manufacturing and trade, continue to influence economic policies to this day.

Suggested Resources

1. Mercantilism: A Lesson for Our Times? - This article focuses on the understanding and relevance of mercantilism in the today's world.
2. Feudalism, Capitalism, and Beyond - This scholarly article explores the transition from feudalism to capitalism, covering the role of mercantilism.
3. The Wealth of Nations by Adam Smith - Adam Smith's critique of Mercantilism and the birth of classical economics.
4. The Cambridge Economic History of Modern Britain (Volume 1) - A comprehensive economic history of Britain, covering mercantilism and its impact on Britain's economy.
5. Mercantilism and The Economy of the Dutch Republic - This article explores the impact of mercantilism on the Dutch economy.

Practical Activity: "Building a Mercantilist Empire"

Objective of the Project

The aim of this project is to understand the principles of Mercantilism and their implementation during the 16th to 18th centuries, particularly in relation to trade, colonization, and wealth accumulation.

Description of the Project

In this project, each group will represent a European nation during the Mercantilist era. The groups will be tasked with formulating a strategy to increase their nation's wealth using the principles of Mercantilism. They should take into account aspects such as trade, monopoly, colonization, and the accumulation of gold and silver.

Necessary Materials

• Research tools (internet, library access, books, etc.)
• Notebooks for sketching ideas and keeping records
• Presentation tools (like Microsoft PowerPoint, Google Slides, etc.)
• Art and craft supplies for creating visual aids (optional)

Detailed Step-by-Step

1. Divide students into groups of 3-5. Each group will be assigned a European country involved in the Mercantilist period (Spain, England, France, Portugal, Netherlands).
2. Each group will research their assigned country's economy, particularly focusing on their trade policies during the Mercantilist era, and the colonies they established.
3. Groups will formulate a strategy on how their assigned country can accumulate more wealth. They should incorporate aspects of trade, monopoly, colonization, and bullionism.
4. After formulating the strategy, groups will create a presentation to explain their strategy to the class. The presentation should include historical context, the strategy steps, expected outcomes, and potential challenges.
5. Each group will present their strategy to the class. The class (and teacher) can then discuss the strategy, point out any potential flaws, or bring up points that the group might not have considered.

Project Delivery

At the end of the project, each group will hand in a written report detailing their experience. This report should include:

1. Introduction: Explanation of Mercantilism, relevance in today's economy, and why understanding Mercantilism is important.
2. Development: Detailed description of their assigned country's economy during the Mercantilism period, discussion of their formulated strategy, and explanation of the process they used to develop this strategy. A thorough presentation of the theoretical understanding of the topic and the practical application of this knowledge.
3. Conclusions: Discussions about what the group learned from this project, challenges they faced, and what they would do differently in the future. This section should reiterate the key points of their strategy and what they learned about Mercantilism through the process.
4. Bibliography: Detailed references to all the resources they used in the research and development of their project.

This project is expected to take 12 hours per student to complete and will involve collaboration and teamwork, research and analytical skills, public speaking, and critical thinking. Through this project, students will gain an in-depth understanding of Mercantilism, its impact on the shaping of modern economics, and how historical economic theories and strategies can be studied and learned from today.