What is mercantilism in economics?

Mercantilism, economic theory and practice common in 16th–18th-century Europe that promoted governmental regulation of a nation’s economy for the purpose of augmenting state power at the expense of rival national powers; it was the economic counterpart of political absolutism. Learn more about mercantilism here.

What were the effects of mercantilism?

mercantilism, economic theory and practice common in Europe from the 16th to the 18th century that promoted governmental regulation of a nation’s economy for the purpose of augmenting state power at the expense of rival national powers. It was the economic counterpart of political absolutism.

What were the principles of mercantilism?

Adam Smith, paste medallion by James Tassie, 1787; in the Scottish National Portrait Gallery, Edinburgh. Mercantilism contained many interlocking principles. Precious metals, such as gold and silver, were deemed indispensable to a nation’s wealth. If a nation did not possess mines or have access to them, precious metals should be obtained by trade.