What isMerchant economic system?

The merchant economic system, often referred to as mercantilism, is an economic theory that emphasizes the role of the state in managing the economy to enhance national power and wealth. It promotes government intervention in trade, aiming to accumulate precious metals like gold and silver through a favorable balance of exports over imports. This system often led to the establishment of colonies and trade monopolies, as nations sought to control resources and markets. Mercantilism was prevalent from the 16th to the 18th centuries before being challenged by classical economic theories advocating free trade.