What is mercantilism and how does it affect countries?

Mercantilism is an economic theory that emerged in the 16th to 18th centuries, emphasizing the importance of accumulating wealth, particularly gold and silver, through a positive balance of trade. Countries practicing mercantilism often implemented protectionist policies, such as tariffs and subsidies, to enhance exports and limit imports. This approach can lead to nationalistic economic strategies that prioritize domestic industries but may also result in trade tensions and conflicts with other nations. Ultimately, while mercantilism can boost short-term national wealth, it may hinder global economic cooperation and efficiency in the long run.