What is marchantilism?

Answer 1

Mercantilism is an economic theory and practice that dominated European thought from the 16th to the 18th century. It emphasizes the importance of accumulating wealth, particularly gold and silver, through a favorable balance of trade, where exports exceed imports. Mercantilist policies often involved government intervention in the economy, including tariffs and subsidies, to promote domestic industries and enhance national power. This approach ultimately laid the groundwork for modern economic theories and practices, although it has been largely replaced by free-market principles.