What is the difference between capitalism and mercantilism?

Capitalism is an economic system in which private owners control the country’s trade and industry, rather than by the state, while mercantilism is an economic theory and practice that advocates governmental regulation of the nation’s economy to generate wealth and augment national power. But, both are economic systems based on profit.

Is mercantilism the earliest form of capitalism?

When we dig deep into the topic of capitalism and mercantilism, we consider how many businesses in the present-day capitalistic economy go by the same principle mercantilists had. Therefore, since the two economic systems had a common objective of profit generation, mercantilism is regarded as the earliest form of capitalism.

What is mercantilism in economics?

Here's how: What Is Mercantilism? Mercantilism is an economic philosophy built around exports and trade. A mercantilist economy tries to increase its wealth by maximizing exports and minimizing imports. This school of thought teaches that there is a limited amount of wealth in the world, and all nations are competing against each other for it.