What is mercalatism?

Mercantilism is an economic theory and practice that emerged in Europe during the 16th to 18th centuries, emphasizing the importance of state intervention in the economy to increase national wealth. It advocates for a positive balance of trade, wherein countries export more than they import, thereby accumulating precious metals like gold and silver. Mercantilist policies often included tariffs, monopolies, and colonial expansion to enhance domestic production and control resources. This approach laid the groundwork for later economic theories, including capitalism and protectionism.