What is mercantilism in economics?

Mercantilism is an economic practice by which governments used their economies to augment state power at the expense of other countries. Governments sought to ensure that exports exceeded imports and to accumulate wealth in the form of bullion (mostly gold and silver). In mercantilism, wealth is viewed as finite and trade as a zero-sum game.

What is mercantile economic system?

Mercantilism is an economic system that dominated the major European trading nations during the sixteenth, seventeenth, and eighteenth centuries. This "mercantile system" was based on the premise that national wealth and power were best served by increasing exports and collecting precious metals in return.

Who used the term mercantile system?

The term "mercantile system" was used by its foremost critic, Adam Smith, but Mirabeau (1715–1789) had used "mercantilism" earlier. Mercantilism functioned as the economic counterpart of the older version of political power: divine right of kings and absolute monarchy.