Definition, Meaning & Synonyms
mercantilism
noun
/mɜːrˈkæntɪlɪzəm/
Definition
Mercantilism is an economic theory and practice that advocates for the regulation of national economies to augment state power at the expense of rival national powers.
Examples
- During the era of mercantilism, many European countries focused on building their gold reserves through trade surpluses.
- Colonial policies were often influenced by mercantilism, leading to the establishment of trade monopolies.
- Critics of mercantilism argued that it restricted free trade and led to constant conflict between nations.
Meaning
The term refers to a dominant economic system in Europe from the 16th to the 18th century, characterized by the belief that a country’s wealth is measured by its stock of precious metals, and that trade should be regulated to achieve a favorable balance.
Synonyms
- commercialism
- trade protectionism
- economic nationalism
