Study Cards on mercantilism, economy, economic

How are economic markets seen in the state-centric political economy and from what did it develop?
State-centric political economy developed out of mercantilism (takes the state to be the most significant economic actor).
In this political economy economic markets are not natural, but exist within a social context that is largely shaped by the exercise of state power.
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What is the classic mercantilist strategy?
To build up a state's wealth, power and prestige by developing a favourable trading balance through producing goods for export while keeping imports low (through protectionism).
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What is the difference between defensive and aggressive mercantilism?
- Defensive mercantilism: designed to protect infant industries and weaker economies from unfair competition from stronger economies.
- Aggressive mercantilism: aimed to strengthen the national economy in order to provide the basis for expansionism and war.
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Why did the state-centric approach decline and revive?
It declined due to their association with the beggar thy neighbour policies of the 1930s (policies pursued at the expense of other states that are believed to be in their own country's short term interest) --> deepened the Great Depression.

They have revived through the idea of state capitalism.
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