Mercantilism

Definition

Mercantilism is an economic theory and practice prevailing in Europe from the 16th to the 18th century, advocating that national strength and economic wealth come from maintaining a positive trade balance, especially through exporting more than importing. It emphasizes government regulation of international trade to achieve that balance.

Related terms

Zero: sum game - A situation in economics or game theory where one participant's gain requires another's loss, mirroring the mercantilist view of trade.

Protectionism:

The economic policy of restraining trade between states through methods such as tariffs on imported goods, closely associated with mercantilist strategies to protect domestic industries.

Balance of trade: The difference between the value of a country's exports and the value of its imports, which mercantilists sought to make as positive as possible