USA HISTORY

Detailed explanation-1: -History of Mercantilism. First seen in Europe during the 1500s, mercantilism was based on the idea that a nation’s wealth and power were best served by increasing exports and limiting imports. Mercantilism replaced the feudal economic system in Western Europe.

Detailed explanation-2: -The theory of mercantilism held that a country’s power depended mainly on its wealth. Wealth, after all, allowed nations to build strong navies and purchase vital goods. As a result, the goal of every nation became the attainment of as much wealth as possible.

Detailed explanation-3: -Mercantilism, also called “commercialism, ” is a system in which a country attempts to amass wealth through trade with other countries, exporting more than it imports and increasing stores of gold and precious metals.

Detailed explanation-4: -Adam Smith coined the term “mercantile system” to describe the system of political economy that sought to enrich the country by restraining imports and encouraging exports. This system dominated Western European economic thought and policies from the sixteenth to the late eighteenth centuries.