Main Economic Policies of Mercantilism

Mercantilism was an economic theory and practice prevalent in Europe from the 16th to the 18th century. It advocated state intervention in the economy to increase national wealth and power. Some of the main economic policies of mercantilism included:

Protectionism

Mercantilist governments imposed trade restrictions such as tariffs and quotas to protect domestic industries from foreign competition. This was aimed at promoting self-sufficiency and reducing reliance on imports.

Colonialism

Colonial expansion was a key component of mercantilist policies. Colonies were seen as sources of raw materials and markets for finished goods, contributing to the wealth and power of the colonizing country.

Accumulation of Wealth Through Exports

Mercantilists believed that a country's wealth could be increased by exporting more goods than importing. This led to policies that encouraged the production and export of goods while limiting imports.

Other strategies included subsidies to domestic industries, bullionism (accumulation of precious metals), and state intervention in economic activities. Mercantilism promoted economic nationalism and the idea of a zero-sum game in international trade, where one country's gain was seen as another's loss.