Answer to Question #168354 in Economics for Owusu Isaac Gregory

Question

Why did the mechantilists focus on exchange as the source of wealth?

Answer 1

Due to specialization. If there is an opportunity for exchange, then each economic agent can focus on producing what he knows best, and then exchange for what he needs. If each economic agent did everything himself, he would have less benefit. Thus, the growth of wealth is directly related to the growth of exchange. It can be compared to the work of different organs in the body.