Yes, that's correct! Mercantilism was a dominant economic theory and practice that emerged in Europe from the 16th to the 18th centuries. It emphasized that a nation's power depended on its wealth, primarily measured in gold and silver. The key tenets of mercantilism included:
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Accumulation of Wealth: Nations should aim to accumulate precious metals and other forms of wealth. This accumulation was believed to enhance national power and influence.
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Trade Balance: Mercantilists advocated for a favorable balance of trade, meaning that countries should export more than they import. This would lead to an influx of gold and silver, increasing national wealth.
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Government Intervention: Mercantilist policies often involved significant government intervention in the economy. Governments would impose tariffs and quotas to protect domestic industries, subsidize exports, and regulate trade to achieve a favorable balance.
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Colonial Expansion: To secure resources and markets, mercantilist powers often engaged in colonial expansion. Colonies were viewed as sources of raw materials and as markets for manufactured goods.
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Competition Among Nations: Mercantilism viewed the global economy as a zero-sum game, where one nation's gain was another's loss. As such, countries were in constant competition with each other for wealth and resources.
Mercantilism eventually gave way to other economic theories, such as classical economics, which emphasized free markets and competition without heavy government intervention. However, its principles shaped the policies of many countries during its time and contributed to the age of exploration and imperialism.