Can someone Illustrate the true example of the true difference of mercantilism and capitalism?

THis is about Asian CIvilization and I really have to know this ASAP!Can someone Illustrate the true example of the true difference of mercantilism and capitalism?
MERCANTILISM held the idea that there is a fixed amount of wealth in the world.


-This means that any transaction that benefits you (meaning


your nation) detracts from the other side.


-EX. Countries can only expand their trade at the


expense of others... It is not mutually beneficial.





-This fixed amount was often measured in gold, and


therefore your nation should try to accumulate as much


gold as possible.





-It's okay to export products to receive gold in return, but don't import products, or you will lose gold.





-The government is the one accumulating the wealth, not a private citizen.








CAPITALISM on the other hand allows for the idea that wealth is not fixed or limited, and that it in fact can be created.





-It has the idea that competition is best for society





-It also has the idea that the government should keep their hand off, and allow free trade.








I hope these basic ideas help. I've included some sources below. If you edit your post and explain specifically in what part of asian history and civilization you are referring to, perhaps I can help more.Can someone Illustrate the true example of the true difference of mercantilism and capitalism?
when you go to the following links it is showing about what you asked, very clearly.
Mercantilism differs greatly from capitalism in that the government is much more involved.





In capitalism it is assumed that the market will for the most part protect and develop itself, and that the best way of producing any goods or services is usually the most efficient way all other things being equal.





Mercantilism applies most of the laws of capitalism but insists on two things: one that everythings value is intrinsically tied to a hard currency of sorts - most commonly gold. And this included the value of nations, so it was in everyone's best interest to have things produced domestically and sold overseas, even if that was significantly less efficient. The governments job was to ensure that more product was being sold overseas (or internationally) than was being bought from other nations.





Examples of mercantile countries in Asia would be Japan pretty much at any point in time prior to WWII - at least in theory if not in practice.
there is a great article on this subject.


http://en.wikipedia.org/wiki/History_of_鈥?/a>
Mercantilism preceded capitalism. Mercantilism is based primarily on a system of exchange of goods. During that time (the 1600s and 1800s), there were far more small businesses and family businesses. It is the earliest phase of capitalism.





Capitalism refers to a system where the means of production are privately owned. Investment, distribution, income, production, pricing and other economic activities are controlled by the owners of the means of production according to their own self-interest.





Hope this helps.