What is the economic system of mercantilism?
Mercantilism refers to a system of economics that prevailed from the 1500s to the 1700s. Under mercantilism, nations sought to increase exports of their products and restrict foreign goods, filling national coffers with gold and silver.HistoryMercantilism dominated western European economic thought from the 16th century to the 18th century.IdentificationAdam Smith, the 18th century economist and author of “The Wealth of Nations,” used the term mercantile system to describe the dominant economic framework of his time.FeaturesMercantilism emphasizes maximizing exports and minimizing imports to maintain a favorable trade balance and build a country’s wealth. Governments enacted policies, such as tariffs and quotas, to protect domestic producers from foreign competition.Theories/SpeculationMercantilist thought held that a favorable trade balance increased a nation’s supply of gold and silver, and kept its employment rate high.EffectsDuring the mercantilist era, wars erupted frequently as r
