What is mercanilism?

Answer 1

Mercantilism is an economic theory and practice that emerged in Europe from the 16th to the 18th centuries, emphasizing the importance of government regulation in managing a nation's economy to enhance state power. It advocates for a positive balance of trade, where exports exceed imports, and promotes the accumulation of wealth, particularly gold and silver, as a measure of national strength. Mercantilist policies often included tariffs, subsidies, and monopolies to protect domestic industries and expand colonial possessions. Overall, it viewed economic activity primarily as a means to serve the interests of the state.