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2023-01-06 11:25:17
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What is Economic Mercantilism | IPE theory 01 | Mercantilism explained | IR lectures.
Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal.
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.
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).
In mercantilism, wealth is viewed as finite and trade as a zero-sum game.
Mercantilism was the prevalent economic system in the Western world from the 16th to the 18th century.
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