How does mercantlism compare with a free enterprise system?

Answer 1

Mercantilism is based on economical regulation, while the free enterprise system is based on economic freedom

Answer 2

Mercantilism is basically checks & balances. There has to be an equal "tit for tat" in this case. Free trade is free for all, everyone has a fair shot, and you can trade without any restrictions or quotas.

Answer 3

The long ago outdated Mercantile system placed laws on trade between a nations colonies and the homeland. One aspect of it was restrict how and by whom shipping of goods and products would be governed. In a capsule, it was an economic system "governed" by laws to such an extent it stifled economic progress.In contrast, a free enterprise system permits free trade and private production. Nation's do place certain restraints on a free market system, however, in comparison to the mercantile system, these restraints are very light.

Over time, free enterprise systems produce much more economic growth then the old mercantile system.

Answer 4

Much has been written about the differences between free market economies and the old mercantile system. The latter system was pioneered by the British. They believed trade with their colonies be restricted to benefit the home land. Even the transportation of products had to be on British ships. A free enterprise system operates best with less government interference. The open market sets prices and quantity of products produced. Wealth and good fortune is earned by market savvy persons and companies.

Answer 5

Mercantilism is a system where economics is seen as a zero-sum game. As a result, metropoles passed regulations forcing their colonies to only trade with them in a scheme to maximize the value-added for the metropole. By contrast, a free enterprise system runs on the assumption that if each producer and consumer makes decisions exclusively based on personal interest (usually cost), wealth continually expands. Instead of being a zero-sum international economy, it becomes a question of an expanding pie.

Answer 6

Under free enterprise, merchants were able to conduct unrestricted international trade. Under mercantilism, international trade was restricted.

Answer 7

Mercantlism is based on economic regulation, while the free enterprise system is based on economic freedom.