mercantilism definition
Mercantilism is an economic theory and practice that dominated European economic thought and policies in the 16th to 18th centuries. It advocated for the accumulation of wealth by a nation through a favorable balance of trade, where exports exceeded imports. Mercantilists believed that a country's prosperity and military power were directly linked to its accumulation of gold and silver, so they sought to promote exports and discourage imports through various means, such as imposing tariffs and subsidies. Additionally, mercantilism encouraged colonies to provide resources and markets for the mother country, promoting economic dominance and control. This economic system eventually gave way to broader concepts of free trade and capitalism.
Mercantilism is an economic theory and practice that emerged in Europe during the 16th to 18th centuries. It was based on the belief that a nation's wealth and power are determined by its accumulation of precious metals, such as gold and silver. Mercantilists believed that a country should maintain a positive balance of trade, exporting more goods than it imported.
The core principles of mercantilism included:
1. Favorable trade balance: Mercantilists viewed exports as beneficial because they brought in foreign currency and precious metals, thus increasing a nation's wealth. On the other hand, imports were seen as negative because they drained a nation's wealth.
2. Protectionism: To support domestic industries and reduce reliance on imports, mercantilist policies involved imposing tariffs, quotas, and other trade barriers to restrict foreign competition.
3. Accumulation of precious metals: Since gold and silver were considered the ultimate forms of wealth, mercantilism focused on amassing large quantities of these precious metals through trade surpluses.
4. Colonialism and imperialism: Mercantilism encouraged the establishment of colonies as sources of natural resources and captive markets for exports. These colonies were used to extract raw materials and provide markets for the home country's manufactured goods.
5. Government intervention: Mercantilism promoted state regulation and control over trade, including subsidies to domestic industries, grants of exclusive trading rights, and the establishment of trade monopolies.
Mercantilism was widely practiced by European powers during the colonial era, but its dominance declined with the rise of free trade and the emergence of other economic theories, such as laissez-faire capitalism.
Mercantilism is an economic theory and policy that was prominent during the 16th to 18th centuries. It is often regarded as one of the earliest systems of capitalism.
To find the definition of mercantilism, you can follow these steps:
1. Start by using a search engine such as Google.
2. Type in "mercantilism definition" in the search bar and hit Enter.
3. Look for reputable sources such as dictionaries, economic websites, or academic articles to get a reliable definition.
4. Scan through the search results and click on a source that seems credible.
5. Read the definition provided by the source to understand the concept of mercantilism.
Mercantilism is an economic system that aims to maximize a nation's wealth through strict government control over trade, industry, and commerce. It emphasizes accumulating wealth in the form of gold and silver reserves by promoting exports and restricting imports. Mercantilist policies often involve imposing tariffs, subsidies, and other forms of protectionism to protect domestic industries and maintain a positive balance of trade. The underlying belief is that a nation's economic prosperity is directly related to its accumulation of wealth and resources.