What are the factors that led to the birth of mercantilism?

Mercantilism emerged in the late medieval period as nations sought to enhance their economic power and national wealth. Key factors included the rise of nation-states, competition for resources, and the desire for self-sufficiency. Additionally, increased exploration and colonial expansion provided new markets and raw materials, reinforcing the belief that a nation’s strength depended on its accumulation of gold and silver through a favorable balance of trade. This economic theory emphasized state intervention in the economy to achieve these goals.