The reasons and effects of the success of the French mercantilist policy

Mondo Finance Updated on 2024-01-25

The economic, financial, and diplomatic upheavals experienced in France in the seventeenth century were part of the chain reaction of the Enlightenment movement in Europe. During this period, the idea of mercantilism took root and was practiced in policymaking. This article will provide an in-depth analysis of the lessons learned from the practice of mercantilist policies in France and the root causes of its impact on the country.

First, in order to fit the historical context of the time, we need a simple but comprehensive explanation of mercantilism. Mercantilism emphasizes the importance of external affairsand believed that wealth accumulation and economic prosperity could only be achieved if exports were greater than imports. Thus, before the eighteenth century, France** had taken a number of measures to promote the overseas sales of its products, such as lowering tariffs, providing loans, and reducing the circulation of money to attract foreign investment and promote exports.

Second, in order to better understand the achievements of mercantilist policies in France, we must examine specific historical examples. For example, in France, between the 16th and 18th centuries, the Paris Exchange and the Bank of France were established to improve the stability and availability of financial marketsReliability. These initiatives undoubtedly provide an excellent infrastructure and environment for French investment and exports. In addition, in the mid-eighteenth century, the French merchant fleet played an important role in the world**, further strengthening France's position as an international commercial center.

Finally, the underlying factors behind the success of mercantilist policies in France deserve attention. First of all, this policy was strongly supported by King Louis XIV. He took the national interest and national prosperity as the starting point, supported business activities, encouraged the development of the banking industry, and made France have a more stable and efficient financing platform. Secondly, all sectors of French society have a positive attitude towards mercantilism and have formedGood cultural atmosphere. This cultural identity and support not only enhances the effectiveness of policy implementation, but also is an important condition for France to maintain strong competitiveness in the long term.

1.The intrinsic urgency of domestic economic development.

1.1 Restore and improve the financial order of the state: At the beginning of the seventeenth century, France was mired in religious wars and political turmoil, and the country's financial situation was in disarrayStability is a concern. In order to establish a solid and healthy fiscal foundation to meet the country's economic needs for continued progress, the French authorities embarked on a mercantilist policy.

1.2 Promote the prosperity and development of modern manufacturing: Although the French economy during this period mainly relied on agriculture as a support, in order to adapt to the various changes in demand brought about by the increase in population and improve the overall economic level of the country, the development of manufacturing has become an urgent problem in FranceOne of the key issues. Mercantilist policies aim to stimulate the growth of local industries and expand manufacturing capacity, thereby stimulating exports and creating more domestic jobs.

1.3 Building a strong and powerful naval lineup: Located in the western part of the European continent, France relies on its unique coastline. In order to ensure the safety of the seaIn order to protect the rights and interests of overseas territories, France must build a naval force with strong combat power and strength. Mercantilist policies provided crucial financial support and protectionist tactics aimed at strengthening the French navy and promoting the prosperity of the seas.

2.Facing a tough competitive environment with many European countries.

2.1 Britain's rise to the top of the world: Since the seventeenth century, Britain has relied on its economic power and overseas coloniesIt quickly became a major pillar of maritime commerce and manufacturing in Europe. With the help of advanced navigation technology, Britain vigorously promoted the development of international and industrial production, and thus transformed into a formidable competitor faced by other European powers such as France. In order to respond effectively to the challenges posed by the United Kingdom, France** was forced to adopt mercantilist policies in order to strengthen the country's economic competitiveness.

2.2 The ruthless contest in the European war world: Although European countries are inextricably linked with close commercial and trade ties, the competition for the interests of the first countries has intensified. In order to ensure the sustainable development of its own industries and markets, France** has adopted a series of protectionist measuresSuch as higher import tariff rates, strict ** bans and export subsidies in order to resist the influx of products from other countries into the French market and ensure a sustainable and profitable share of the trade balance.

2.3 Long-term planning for economic self-sufficiency: Mercantilist policies strongly call on the state to base itself on the strategic level of economic self-sufficiency, encourage the flourishing of domestic industries, and further reduce foreign dependence. In Europe at the time, countries were striving to gain economic independence and self-sufficiencyFrance** also hopes to further strengthen the country's economic strength and independence through the implementation of a deliberate mercantilist policy.

In general, the background of France's mercantilist policy is mainly due to the dual needs of domestic economic development and the pressure of coping with the complex competitive environment among European countries. The domestic economy wants to develop, promote the development of localized manufacturing, and create more jobsjobs, it is necessary to change the new policy.

Due to the increasing competitive pressure from countries such as the United Kingdom, France has had to take some protectionist measures, such as mentioningHigh tariffs, restrictions**, financing exports, etc., to protect domestic industries and markets, and increase economic and national independence. Therefore, the mercantilist policy promoted the development of the French economy to a certain extent, and also laid a solid foundation for the later industrialization process.

1.Implementation of import restrictions and protection strategies.

In order to defend the interests of its own industry and market, France has resolutely decided to adopt an effective import restriction and protection strategy. First of all, France resolutely implements a strict tariff policyLevy high taxes and fees on imported goods that are much higher than the usual level, in order to increase the pricing of imported goods, so that they form a more significant gap than domestic products, and thus increase the competition for market share of local goods.

Secondly, France has implemented strict restrictive measures, aiming to block the large inflow of foreign goods and avoid the impact and threat of foreign competitive forces on its own industry as much as possible. In addition, France** has carefully considered and strictly implemented the export ban, and imposed clear restrictions on the export of some key resources and products, so as to ensure the healthy growth and sustainable development of its own industry and manufacturing industry.

2.Implementation plan for export promotion and subsidies.

In order to compensate for the losses caused by the import restrictions, France** has been actively promoting exports. Through various export subsidies and incentive mechanisms, the export potential of domestic enterprises is stimulated, so as to improve the market competitiveness of export commodities. This type of subsidy is usually in the form of providing financial support to exporters, reducing or reducing the tariff burden, providing comprehensive, timely and practical market information and related technical support, so as to assist enterprises to successfully enter overseas markets and further increase the amount of exports.

This kind of strategy not only helps to increase the total net surplus of the country in the process of foreign affairs, but also enhances France's core competitiveness in the international field, so that the national income can be significantly improved and enhanced, which is another important purpose of the implementation of France's mercantilist policy.

3.Promote the comprehensive development of the country's industry and manufacturing industry.

In order to meet the urgent needs of domestic economic construction and development, France has decisively launched a mercantilist policy to promote the rapid growth of its own industry and manufacturing industry. At that time, agriculture was the dominant economy in France, but in order to meet the needs of the growing population and raise the national income to a higher standard of living, the development of manufacturing became an inevitable choice.

To this end, France** has adopted a variety of methods, including providing huge financial support, carrying out systematic technical training, and standardizing market protection measures, etc., to encourage more domestic enterprises to invest funds in the field of industry and manufacturing, in order to improve production capacity and product quality, create more employment opportunities, further optimize and improve the economic structure, and gradually realize economic diversification.

4.Establish overseas commercial colonies, expand your network, and access scarce resources.

In order to further broaden the field, increase market share, and obtain more abundant scarce mineral resources on this basis, France has taken positive actions and began to devote itself to the establishment of overseas commercial colonies. First, France gradually expanded its sphere of influence on the African continent, the Caribbean, and the vast islands of the Indian Ocean, and thus amassed a number of colonies of considerable size.

Second, France used these colonies to build a commercial economic system dominated by slaves**, sugar cane cultivation, coffee roasting, and other industries. These colonies not only provided abundant natural resources and raw materials, but also became an important sales market for French goods, strongly supporting the country's industrial development, and at the same time providing a strong political and economic backing for France's mercantilist policies.

Through the implementation of these strategies, such as strict control of imports, strong support for exports, active promotion of the all-round development of local industry and manufacturing, and the steady construction of overseas commercial colonies, France hopes to strengthen and consolidate its economic strength.

These policies will not only effectively reduce France's dependence on foreign goods, protect domestic industries and markets, but also increase domestic productivity and economic self-sufficiencyAt the same time, by actively expanding its own export market and steadily building commercial overseas colonies, France has also deeply participated in international activities on a global scale, greatly enhancing national income and enhancing France's status and influence on the world stage, which are a unique economic development path that France has embarked on in the long-term historical process.

1.Influential states are highly centralized and their ruling power.

In France during the mercantilist period, the high concentration of power and decision-making efficiency of a strong state was necessary for the long-term implementation of its strategy. Louis XIV was the king of France at the time, and his model of rule was revered as an "absolute monarchy", and because he succeeded in merging his political and economic leadership into one, he was able to make the right and powerful decisions in an instant, both in speed and effect, so that various policies could be implemented accurately.

Such a highly centralized system has enabled France** to move quickly to advance mercantilist policies, including strict restrictions on imports, strong support and encouragement of exports, and a strong development of domestic industrial production.

2.The business and manufacturing industry is already well established.

France already had a high degree of commercial and manufacturing power when it pursued a mercantilist strategy. Since the early 17th century, Paris, the heart of French commerce, has become one of the largest cities on the continent, where the vibrant and thriving commercial scene takes place.

In addition, the manufacturing sector in France has long been well established, with industries such as textiles, ceramics and glass becoming an important part of this well-developed manufacturing sector. Such abundant commercial and manufacturing resources have undoubtedly created unique advantages and favorable conditions for France to pursue a mercantilist strategy to promote local economic prosperity and strengthen its activities.

3.Extremely attractive policy appeals and well-thought-out diplomatic initiatives.

In the specific practice of mercantilist policies, France has adopted a highly attractive policy and a well-thought-out diplomatic action, which has significantly changed the original structure and continuously improved the level of surplus.

Not only that, France also cleverly uses the means of diplomatic exchanges with other countries, such as signing a series of ** agreements, establishing overseas business organizations and vigorously carrying out colonial activities, etc., in order to expand its own ** network and market expansion, thereby further increasing the ** opportunities and profit margins.

4.The full cooperation of a group of expert advisors with excellent economic wisdom.

In France during the mercantilism period, a group of outstanding economic consultants were vigorously introduced and trained, and they provided critical support and guidance for national decision-making with their profound economic knowledge and rich practical experience. One of the most well-known and outstanding of these was Jean-Baptiste Colbert, one of the leading advocates of the full implementation of France's mercantilist policies, and during his lifetime he held the key position of French Minister of Finance and Economics.

With a series of strong reform plans, pragmatic and efficient policies, and a positive and steady manufacturing development path, Colbert has successfully led the French economy into a new era of rapid take-off. These talented economists and consultants played a vital role in the entire process of policy formulation and implementation, and their accumulated expertise and valuable practical experience undoubtedly contributed to the successful implementation of France's mercantilist strategy, paving the way for France's future industrialization and commercial development.

1.The result is a booming commercial and manufacturing industry in France.

Under the tremendous impetus of the mercantilist policy, the integrated development of commerce and manufacturing in France was significantly promoted. Among them, we should avoid excessive imports, strive to protect national industries, and prudently implement strategies to encourage exports, which has injected a strong impetus into France**, so as to stimulate the in-depth growth of the country's business and manufacturing industry. The strict measures against high tariffs and restrictions have effectively reduced the competitive pressure of foreign goods, so that the local French industry can survive and develop in a better situation.

On the other hand, France** has also mobilized all its efforts to provide financial support, provide technical training, implement market protection measures, and actively encourage its enterprises to devote themselves to the industrial and manufacturing sectors, with a view to improving production capacity and product quality. These unique strategies have greatly accelerated the rapid rise of France's commercial and manufacturing industries, laying a solid foundation for the country's economic diversification and industrial structure upgrading.

2.It has significantly increased the level of national household wealth and income.

When mercantilist policies were put into practice, they had a significant effect on raising the level of household wealth and income in France. By imposing specific restrictions on imports, France has greatly promoted the rapid development of domestic industries and enterprises while reducing its dependence on foreign goods

This transformation has led directly to a surge in domestic jobs and a significant increase in the income level of the masses. At the same time, the boom in exports and the continuous growth of the surplus have also brought rich profits to France. These continuous economic incomes have further accumulated abundant wealth, greatly improved the living standards of residents across the country, and effectively promoted the continuous development, transformation and upgrading of society.

3.It has significantly improved the country's financial strength and international status.

The successful implementation of the mercantilist policy has greatly enhanced France's financial strength and its influence in the international arena. Thanks to the effective control of import channels and the high tariffs charged, France** was able to obtain sufficient tax revenues, thus effectively increasing the accumulation of the national treasury.

These additional revenues are used for development and support in various areas, such as promoting defense and military research and development, strengthening infrastructure construction, fully supporting industrial growth, and further expanding overseas territories, thereby enhancing the overall competitiveness of the country. In addition, with the continuous activity of ** activities and the steady expansion of **surplus, France's position in the world is becoming more and more prominent, and its influence in international affairs is becoming more and more far-reaching.

4.It has cultivated the confidence and self-confidence of France's commercial and economic strength.

Thanks to the successful implementation of mercantilist policies, France's position of commercial and economic power has been significantly enhanced, and it has fostered endless confidence. Through scientific planning and rational management of import links, as well as efficient protection of national industries, French enterprises of all kinds have gradually taken a dominant position in the domestic market, and even taken bold steps into the global market.

This in-depth increase in commercial and economic power has emboldened French businessmen and entrepreneurs to devote themselves more actively to business and manufacturing, and jointly promote the prosperity and development of their respective fields. On the other hand, France's mercantilist policies are also dominating the marketRong provides a solid guarantee to help entrepreneurs dare to carry out bold investment behaviors and technological innovation.

All in all, the implementation of mercantilist policies has had a profound impact on the entire economic ecosystem in France. It not only effectively promoted the rapid development of French commerce and manufacturing, but also significantly increased the level of national household wealth and income, increased the country's financial strength and international status, and at the same timeIt has also been effective in cultivating the resilience and self-confidence of France's commercial and economic power. It was these economic influences that laid a solid foundation for France's later industrialization process and development, and laid a solid economic foundation for France's eventual rise to become a European hegemon.

1.The degree of national unity and centralization has been deepened.

Against the backdrop of the prevailing mercantilist policies, France's domestic and foreign affairs have achieved remarkable results. At that time, King Louis XIV of France held a monopoly on power, and his political and economic power was unmatched, and he was known as the "absolute monarchy". The mercantilist policy gave the French regime a wide range of responsibilities and strong control tools (such as strict ban on imports, imposition of high tariffs, and resolute protection of domestic industry).

These substantive measures have effectively improved the state's ability to intervene and manipulate the economic system, thereby further consolidating the ruling foundation of the monarchy, making the country more unified and more centralized.

2.Promote the improvement of the competitiveness of the French nation.

The process of implementing the mercantilist policy is, in fact, a process of tempering and stimulating France's international competitiveness. The state promotes the development and growth of domestic enterprises by restricting imports and firmly protecting local industries, which is undoubtedly improving the quality and market competitiveness of their products.

At the same time, the mercantilist policy has also encouraged French companies to actively expand foreign markets and vigorously promote the scale of exports, in order to maximize the surplus. These effective strategies have greatly enhanced France's position in the global network, allowing it to compete with other European rivals for more lucrative profits and economic dividends.

3.Support the expansion of the colonial system and the construction of the empire.

Mercantilist policies played an important role in France's colonial expansion and imperial development. During the 17th century, France established overseas commercial colonies, thus firmly controlling the access to raw materials at sea and even overseas. These colonies brought abundant and high-quality natural resources and raw materials to France, and at the same time, they were an important window for French goods to be sold to the world.

The mercantilist policy strongly boosted France's advantage in the colonial field by actively promoting foreign trade activities, strictly restricting imports, and firmly promoting local industries, thereby greatly accelerating the pace of construction and expansion of its colonial empire.

4.It had a profound impact on the social structure and class relations in France.

Mercantilist policies had a significant impact on social class relations and their internal composition in France. In the historical stage of the implementation of mercantilist policies, the comprehensive involvement and in-depth regulation of economic affairs by the French state triggered a large-scale social and economic adjustment and reform turmoil.

* Strong support for industry and commerce and their manufacturing links has led to an unprecedented rise in the social status of businessmen and business leaders, and then graduallyJoin the ranks of the elite of society. The changes in the social structure brought about by mercantilist policies further exacerbated the differences and inequalities between the various classes, thus profoundly shaping the social structure and operating mode of France.

Mercantilist policies have had a profound and multidimensional impact on the national life of France. This policy not only strengthened the country's unity and centralization system, significantly enhanced France's competitiveness on the global stage, but also provided strong support for France's colonial development and the construction of the imperial territoryand had a transformative impact on the social structure and class relations in France. These all-encompassing influences have shaped France's unique economic and political ecology and have had a profound and lasting impact on the course of French history and its future development.

1.Laying the cornerstone of the Industrial Revolution in France.

France's mercantilist policies are hailed as the cornerstone of the French Industrial Revolution. During the implementation of such a high-value policy, France** has strongly promoted the further development of its own industry and manufacturing industry with comprehensive measures such as restricting imports, vigorously boosting domestic industries, and actively promoting imports and exports.

This move has laid a substantial and stable foundation for scientific and technological innovation, independent innovation and industrialization in the era of industrial revolution. The HEAP mercantilism policy has also inspired many French entrepreneurs to boldly try to invest and innovate, so that technological breakthroughs can be made, and production efficiency and output quality have been generally improved. Such a governing concept can be called a grand blueprint for the future industrial revolution in France.

2.Promote the evolution of the French economic development model.

Mercantilist policies have had a profound impact on the transformation of France's economic model. During this period of history, France** has adopted a package of in-depth interventions in key sectors of the economy, effectively stimulating economic growth by restricting imports and protecting local industries.

However, as time passed, the French gradually realized the limitations of mercantilist policies, and began to actively transform towards a more liberal environment and a market economy. This trajectory of adjustment vividly and profoundly depicts the transformation of the French economic model, from the mercantilist phase of the past, which relied too much on state intervention, to the economic system that pursues free hands-off. All in all, this decision played a key role in paving the way for the modernization of the French economy.

3.It gave birth to the modern French business and the ** system.

After the baptism of mercantilist policies, the modern French commercial and ** system came into being. During the implementation of the mercantilist decree, France** strongly promoted the rapid development of the international market by strictly controlling imports and adopting a clear export incentive mechanism. These policy initiatives have created a wealth of opportunities for local French businessmen and entrepreneurs, further stimulating the vitality of business activity.

As a result, France's commercial and professional networks have been actively expanded, coupled with the close ties between local merchants and overseas colonies, which have provided a strong backing for the construction of modern French commerce and the national system, and laid a solid foundation for France to become a global commercial power.

4.It has shaped the world economy and the international pattern.

France's mercantilist policy has deeply influenced and changed the world economy and the international landscape. In those days, France focused on passingGrasp the two elements of dominance and expand colonial influence, and compete fiercely with other European powers.

This kind of competition and game mode has been deepened, forming an intricate network and a major pattern of international relations. These elements of fierce competition have not only affected the international market, but also had a far-reaching impact on the world economy, promoted the establishment of a new national partnership between countries, and contributed to the improvement and strengthening of political alliances, which can be said to have a far-reaching impact.

At the same time, many factors such as France's centralization, increasingly perfect business system and highly developed manufacturing base have jointly helped to promote France's mercantilist policy to achieve remarkable results.

This productThe highly proactive and clear strategy has successfully revolutionized the French economic environment and significantly increased its national wealth and income levels, thus further contributing to the country's comprehensive national strength and international image.

For all these reasons, the French mercantilist policy has been implemented and driven in a big way, which shows that behind it is the effective synergy of many factors.

For the French economy and national developmentThe vigorous development of commerce and manufacturing, and the steady growth of national wealth and per capita income levels are the direct results of mercantilist policies.

At the same time, it also effectively consolidated France's important role in Europe and even the world at that time, and smoothed industrialization and commercial activitiesIt laid a solid foundation for the rapid development of the French economy and the construction of the Empire State Building.

However, it is also worth noting that mercantilist policies have inherent limitations and are not sustainable in the long term, because they are free over timeThe concept of market economy has gradually adopted mercantilism and has become the core driving force for the development of the global economy. Therefore, we need to be good at drawing useful historical lessons from them, so as to better respond to the development needs of the times and the various challenges faced in the process of globalization under the current situation.

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