WORLD HISTORY

Detailed explanation-1: -Under mercantilism, nations frequently engaged their military might to ensure that local markets and supply sources were protected. Mercantilists also believed that a nation’s economic health could be measured by its ownership of precious metals, such as gold or silver.

Detailed explanation-2: -History of Mercantilism During that time, wealth was measured by a country’s quantity of silver and gold. To accumulate more wealth, European countries, such as Britain and France, would focus on maximizing their exports and minimizing imports, which resulted in a favorable balance of trade.

Detailed explanation-3: -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.

Detailed explanation-4: -Mercantilism held that the wealth of a nation was measured by the quantity of gold and precious metals it possessed; that is why mercantilists supported the reasoning of colonial policy and protectionism.

Detailed explanation-5: -According to mercantilist theory, a large population was necessary in order to supply labour, markets, and an army to the nation. The larger the nation, the more wealth in could accumulate, and the bigger its army. So larger populations were associated with an increase in a nation’s prosperity.