key term - Mercantilism

Definition

Mercantilism is an economic theory that emphasizes the importance of accumulating monetary reserves through a positive balance of trade, especially of finished goods. It advocates for a strong governmental involvement in the economy to protect and enhance national wealth.

Related terms

Balance of Trade: The difference in value between a country's imports and exports over a certain period.

Protectionism: An economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow fair competition between imports and goods and services produced domestically.

National Wealth: The total value of all financial assets owned by a nation, including natural resources, capital goods, and human capital