Mercantilism is an economic theory and practice that dominated European trade and economic policies from the 16th to the 18th centuries. It is based on the principle that a country's wealth is determined by its accumulation of precious metals, such as gold and silver, through a favorable balance of trade. Mercantilists believed in restricting imports and subsidizing exports to achieve a positive trade balance and accumulate more wealth. They also advocated for government intervention and protectionist measures, such as tariffs and colonial monopolies, to ensure domestic industries' growth and maintain economic dominance. Ultimately, mercantilism aimed to strengthen a nation's economy, increase its power and influence, and build a self-sufficient and self-reliant nation. However, mercantilism was later criticized for its focus on accumulation of bullion and limited understanding of international trade and comparative advantage.
