What are the disadvantages and advantages of mercantilism?

Answer 1

Mercantilism, an economic theory prevalent in the 16th to 18th centuries, has both advantages and disadvantages. One advantage is that it promotes national self-sufficiency and can lead to a strong, centralized economy through protectionist policies and wealth accumulation. However, its disadvantages include stifling free trade, leading to inefficiencies, and fostering monopolies, which can restrict competition and innovation. Additionally, mercantilist policies often prioritize the interests of the state over those of individuals, potentially leading to exploitation and social unrest.