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Mercantilist Policies

Definition

Mercantilist policies were economic regulations implemented by European countries during the colonial period that aimed to increase their own wealth and power. These policies included strict control over trade, the accumulation of gold and silver, and the establishment of colonies as sources of raw materials.

Analogy

Think of mercantilist policies like a game where one player hoards all the resources for themselves in order to become the most powerful player. They limit trade with others and try to accumulate as much wealth as possible.

Related terms

Triangular Trade: This was a system of trade between Europe, Africa, and the Americas that involved the exchange of goods, including slaves, across these three regions.

Navigation Acts: These were a series of laws passed by England that required colonial goods to be transported on English ships and sold only in English markets.

Balance of Trade: This refers to the difference between a country's imports and exports. In mercantilism, countries sought to have a favorable balance of trade by exporting more than they imported.