What is the idea mercantilism?

Merchantilism is a system which believes that best way to protect a nation's prosperity is by the stringent application protectionist measures:

1. That every inch of a country's soil be utilized for agriculture, mining or manufacturing.

2.That all raw materials found in a country be used in domestic manufacture, since finished goods have a higher value than raw materials.

3.That a large, working population be encouraged.

4.That all export of gold and silver is prohibited and all domestic money kept in circulation.

5.That all imports of foreign goods be discouraged as much as possible.

6. That where certain imports are indispensable they be obtained at first hand, in exchange for other domestic goods instead of gold and silver.

7.That as much as possible, imports are confined to raw materials that can be finished [in the home country].

8. That opportunity is constantly sought for selling a country's surplus manufactures to foreigners, so far as necessary, for gold and silver.

9.That no importation be allowed if such goods are sufficiently and suitably supplied at home.

As you can see this is perhaps an attractive proposition for countries with extensive raw materials or with extensive overseas possessions from which they can extract raw materials in exchange for goods.