Theory of Mercantilism

Mercantilism was an economic theory and practice prevalent in Europe from the 16th to the 18th centuries. It emphasized the accumulation of wealth through a favorable balance of trade, primarily through exports. Governments actively promoted exports and discouraged imports through various measures like tariffs and subsidies. The goal was to increase a nation's wealth and power by accumulating gold and silver and building a strong domestic industry while eliminating foreign competition.