USA HISTORY

Detailed explanation-1: -Mercantilism was based on the idea that a nation’s wealth and power were best served by increasing exports and reducing imports. It’s characterized by the belief that global wealth was static and that a nation’s economic health relied heavily on its supply of capital.

Detailed explanation-2: -Mercantilists argue that a nation’s wealth is tied to its stocks of money, particularly the acquisition of precious metals. By this logic, any money leaving a country-including money traded for imports-means a loss of national wealth. As a result, mercantilists advocate for protectionist trade policies.

Detailed explanation-3: -March 2019) (Learn how and when to remove this template message) Neomercantilism (also spelt as neo-mercantilism) is a policy regime that encourages exports, discourages imports, controls capital movement, and centralizes currency decisions in the hands of a central government.

Detailed explanation-4: -According to the economic theory of mercantilism, which prevailed in Europe from the 16th to the 18th century, a favourable balance of trade was a necessary means of financing a country’s purchase of foreign goods and maintaining its export trade.