What is mercantilism?
My answer:
Mercantilism is a theory that when a country exports more items than it imports, it will get richer.
Please check if my answer is acceptable. I am almost certain it is correct.
Sounds reasonable.
Alrighty then.
Your answer is partially correct, but there are a few more elements to consider when explaining mercantilism. Mercantilism is an economic theory and practice that dominated Western European economic policy from the 16th to the 18th century. It emphasizes the importance of accumulating wealth through international trade. The key principles of mercantilism are as follows:
1. Favorable trade balance: Mercantilism suggests that a country should strive to have a positive balance of trade, meaning it should export more goods and services than it imports. This is believed to bring in more wealth and contribute to the country's economic strength.
2. Protectionism: Mercantilism promotes protectionist measures such as tariffs, quotas, and subsidies to protect domestic industries and limit the entry of foreign competition. By doing so, it aims to ensure that the country's exports are greater than its imports.
3. Acquisition of colonies: Mercantilist countries often sought to establish colonies in other parts of the world to secure an abundant supply of raw materials, establish captive markets for their manufactured goods, and maintain a favorable trade balance.
4. Accumulation of gold and silver: Mercantilism places great importance on accumulating precious metals, especially gold and silver. These metals were seen as the basis of wealth and were used to back up the country's currency.
While your initial definition of mercantilism is correct in stating that the goal is to export more than import, it is important to note the broader context of protectionism, colonialism, and the accumulation of precious metals that were integral to the mercantilist principles.