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Question
Explain the impact and consequence of the Reformation under the following heading:
How did the rulers of Nation-States work on Mercantilist theories?
Solution
Mercantilism was a theory that the state should regulate economic activities in order to achieve some national objectives. It should follow the policy of ‘Protectionism’. Large nation-states had come into existence in England, France, Spain, and Portugal. The rulers of these countries had imposed numerous restrictions on international trade in the national interest. Under the influence of mercantilist theories, the governments encouraged ‘Protectionism’, which meant protecting home producers from foreign competition by taxing imported goods.
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