WORLD HISTORY

Detailed explanation-1: -Mercantilism is an economic practice by which governments used their economies to augment state power at the expense of other countries. Governments sought to ensure that exports exceeded imports and to accumulate wealth in the form of bullion (mostly gold and silver).

Detailed explanation-2: -A “favorable” balance of trade is one in which the value of domestic goods exported exceeds the value of foreign goods imported.

Detailed explanation-3: -Mercantilism is an economic theory that emphasizes self-sufficiency through a favorable balance of trade. Mercantilist policies focus on the accumulation of wealth and resources while maintaining a positive trade balance with other countries.

Detailed explanation-4: -Mercantilism was based on the principle that the world’s wealth was static, and consequently, governments had to regulate trade to build their wealth and national power.

Detailed explanation-5: -Mercantilism is economic nationalism for the purpose of building a wealthy and powerful state. 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.