Described the theory of mercantilism

Answer 1

Mercantilism is an economic theory that emerged in the late Middle Ages and dominated European thought from the 16th to the 18th century. It posits that a nation's wealth and power are best served by increasing exports and accumulating precious metals, such as gold and silver. Under this theory, governments actively regulate the economy through protectionist policies, such as tariffs and subsidies, to enhance national self-sufficiency and minimize imports. Ultimately, mercantilism emphasizes the importance of a favorable balance of trade as a means to achieve national prosperity.