Exam (elaborations)
ECS3705 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024
- Course
- History of Economic Thought
- Institution
- University Of South Africa
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ECS3705 Assignment 2(COMPLETE ANSWERS)
Semester 2 2024
100% GUARANTEED
, ECS3705 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2024
“Kenya keen on fourth industrial revolution” Read the
following article and then answer the questions that
follow. The government has identified specific goals and
targets to steer growth as the country strives to catch up
with the fourth industrial revolution. The fourth industrial
revolution is the ongoing automation of traditional
manufacturing and industrial practices, using modern
smart technology. Among government targets is the
development of the iron and steel industry through the
establishment of an integrated steel mill. Source: The
Star Access date: 29 August 2024 For full article visit
website: Question 1 After reading the extract, identify and
explain any five mercantilist principles that are implied in
the article. Make sure your answer is based on
information in the case study. (25 marks)
To answer this question, let's first review what mercantilism involves. Mercantilism is an
economic theory that was dominant in Europe from the 16th to 18th centuries. It advocates for
government regulation of the economy to increase state power, with a focus on maximizing
exports and minimizing imports, accumulating wealth (especially gold and silver), and achieving
economic self-sufficiency. Here are five mercantilist principles implied in the article, explained
based on the information provided:
1. Promotion of Domestic Industry and Self-Sufficiency
The government’s goal to develop the iron and steel industry through an integrated steel mill is
aligned with mercantilist principles, particularly the desire for economic self-sufficiency. In
mercantilism, countries seek to produce goods domestically rather than relying on imports. By
establishing its own steel production capacity, Kenya aims to reduce its dependence on imported
steel and strengthen its internal industrial base.
Explanation: This reflects the mercantilist belief that a nation should rely on its own
resources and industries rather than importing goods, which would drain national wealth.
By developing a key sector like iron and steel, Kenya can control critical infrastructure
development, such as manufacturing and construction.
2. Government Intervention in the Economy
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