(a) Reformation gave rise to nationalism, particularly in Germany and England. Rulers declared them as heads of ** and government. Control on the. ** caused a common national government within the Nation States.
(b) 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.
