What is the main idea behind the theory of mercantalism?

Answer 1

Mercantilism is an economic theory that emphasizes the importance of accumulating wealth, primarily gold and silver, through a favorable balance of trade. It advocates for government intervention in the economy to promote exports over imports, thereby increasing national power and economic stability. Mercantilism views the global economy as a zero-sum game, where one nation’s gain is another’s loss, leading to competition among nations for resources and markets. Ultimately, it seeks to strengthen the state through economic self-sufficiency and protectionist policies.