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.
Analogy
Think of mercantilism like a competitive game of resource management where each country is trying to collect as much gold and silver as possible by selling (exporting) more items than it buys (imports), similar to a player in a board game who strategizes to gather more points than others to win.
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
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