noun
- an economic theory that a nation’s wealth and power depend on accumulating gold and silver and maintaining a favorable balance of trade
Usage: historical; economics
Examples
- Mercantilism dominated European economic thought from the 16th to 18th centuries.
- Under mercantilism, colonies existed primarily to benefit the mother country.
- The theory of mercantilism encouraged nations to export more than they imported.
- Adam Smith criticized mercantilism in his work on free market economics.
- Mercantilism led to intense competition between European powers for colonial resources.
- The decline of mercantilism paved the way for modern capitalist theory.