What does mercantilism mean?

Definition: Mercantilism is an economic theory where the government seeks to regulate the economy and trade in order to promote domestic industry – often at the expense of other countries. Mercantilism is associated with policies which restrict imports, increase stocks of gold and protect domestic industries.

What is mercantilism economic policy?

Mercantilism is a nationalist economic policy that is designed to maximize the exports and minimize the imports for an economy. In other words, it seeks to maximize the accumulation of resources within the country and use those resources for one-sided trade.

What are some examples of mercantilism?

A surge of protectionist sentiment, e.g. US tariffs on Chinese imports, and US policies to ‘Buy American.’ Adam Smith’s “The Wealth of Nations” (1776) – argued for benefits of free trade and criticised the inefficiency of monopoly. Mercantilism is a philosophy of a zero-sum game – where people benefit at the expense of others.