What is mercanthalism?

Mercantilism is an economic theory and practice that dominated European thought from the 16th to the 18th centuries. It emphasizes the importance of accumulating wealth, primarily gold and silver, through a positive balance of trade, where exports exceed imports. Governments played a key role by protecting domestic industries, imposing tariffs, and establishing colonies to secure resources and markets. The ultimate goal was to enhance national power and economic self-sufficiency.