What is the concept of mecantilism?

Answer 1

Mercantilism is an economic theory and practice that emerged in the early modern period, emphasizing the role of the state in managing the economy to increase national wealth and power. It advocates for a favorable balance of trade, where a country exports more than it imports, and encourages the accumulation of precious metals like gold and silver. Mercantilist policies often include protectionist measures, such as tariffs and subsidies, to support domestic industries and reduce reliance on foreign goods. Overall, mercantilism prioritizes national interests and economic self-sufficiency.