What were the implications of mercantilism?

Answer 1

Mercantilism, prevalent from the 16th to the 18th centuries, emphasized the importance of a strong national economy achieved through government regulation and accumulation of wealth, particularly gold and silver. This led to increased competition among nations for colonies and resources, fueling imperial expansion and colonialism. The focus on trade surpluses often resulted in restrictive trade practices and tariffs, which stifled free trade and innovation. Ultimately, mercantilism laid the groundwork for modern economic theories, including capitalism, by highlighting the importance of trade and national economic interests.