What is mercantilisam?

Answer 1

Mercantilism is an economic theory and practice that emerged in Europe from the 16th to the 18th centuries, emphasizing the importance of accumulating wealth, primarily gold and silver, through a favorable balance of trade. It advocates for government intervention in the economy, including protectionist policies like tariffs and subsidies, to promote exports over imports. Mercantilists believed that national strength could be maximized by limiting imports and fostering domestic industries. Ultimately, this theory laid the groundwork for modern economic thought and trade practices.