What is a good definition of mercantilism? I don't understand when all the definitions talk about economic systems of national wealth.
Thank you!
The economic theory that the prosperity of a nation depends upon its supply of capital, and that the volume of the world economy and international trade is unchangeable.
Mercantilism is an economic theory and a system that was predominant in Europe between the 16th and 18th centuries. It emphasizes the idea that a nation's wealth and power depend on its ability to accumulate precious metals, especially gold and silver.
To understand the concept of mercantilism, it is important to recognize the historical context in which it developed. During this era, European nations were exploring and colonizing new territories around the world. Mercantilism emerged as a response to the competition among these nations for wealth and resources.
Under the mercantilist system, nations aimed to achieve a favorable balance of trade, meaning that they wanted to export more goods than they imported. They believed that this would lead to an influx of precious metals and enlarge their wealth. To achieve this balance, mercantilist policies often included strategies such as imposing tariffs on imports, subsidizing domestic industries, and establishing colonies as sources of raw materials.
Now, to provide a clearer definition of mercantilism, it can be described as an economic system focused on the accumulation of national wealth through the promotion of exports and the restriction of imports, with the belief that such measures would enhance the power and prosperity of a nation. By understanding the historical context and the core principles of the system, you will have a better grasp of what mercantilism entails.
Too bad Ren didn't give the source of the definition he/she plagiarized.
Here are several definitions:
http://www.answers.com/topic/mercantilism
Scroll down and read several. At least one of them should make better sense to you than others.
http://dictionary.reference.com/browse/mercantilism = commercialism
and
http://www.google.com/search?aq=f&sourceid=chrome&ie=UTF-8&q=commercialism