What caused mercantilism to occur?

Mercantilism emerged in the late medieval period as European nations sought to increase their wealth and power through trade and colonization. The rise of nation-states, competition for resources, and the desire for self-sufficiency fueled mercantilist policies that emphasized the accumulation of precious metals and a favorable balance of trade. Additionally, the exploration of new territories and the establishment of colonial empires provided access to raw materials and new markets, further driving the mercantilist agenda.