Mercantilism Meaning: Definition, Examples, and Translations
๐ผ
mercantilism
[หmษหk(ษ)ntษชlษชz(ษ)m ]
Definition
economy
An economic theory and practice in which a country's trade and industry are controlled by the state to increase wealth and power.
Synonyms
commercialism, economic nationalism.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| mercantilism |
Best used when discussing historical economic theories and practices from the 16th to 18th centuries that were focused on maximizing trade surplus and accumulating precious metals.
|
| commercialism |
Appropriate when talking about the emphasis on the maximizing of profit and commercialization, often with a critical tone regarding consumer culture.
|
| economic nationalism |
Used in discussions about modern economic policies that prioritize national interests, local businesses, and self-sufficiency over global trade.
|
Examples of usage
- England practiced mercantilism in the 17th and 18th centuries.
- Mercantilism aimed to increase a nation's wealth by imposing government regulation on all of the nation's commercial interests.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Historical Origins
- The term 'mercantilism' came into use in the 18th century to describe economic practices from the previous centuries.
- It became dominant in Europe from the 16th to the 18th centuries as nations aimed to build wealth through trade and colonialism.
- Many countries built up stockpiles of gold and silver, believing that money equated to a nation's power.
Economic Theory
- Mercantilism emphasized that the worldโs wealth was static; one nation's gain was another's loss.
- Countries enacted tariffs and subsidies to encourage domestic production and reduce imports, protecting local businesses.
- The focus was on a favorable balance of trade, where exports would exceed imports.
Cultural Impact
- The mercantilist view influenced colonial policies, as countries sought to establish colonies to secure resources and markets.
- It played a significant role in the Age of Exploration, motivating countries to expand their territories across the globe.
- Literature from the mercantilist period often reflects the competition between nations for dominance in trade.
Criticism and Evolution
- Economists like Adam Smith criticized mercantilism; he argued that free trade would promote better wealth for everyone.
- The decline of mercantilism began in the late 18th century with the rise of capitalism and laissez-faire economics.
- Mercantilist policies can still influence modern protectionist practices in some countries today.
Modern Connections
- Certain government practices still reflect mercantilist principles, such as protecting local industries through tariffs.
- Discussions on trade wars often echo mercantilist ideas as nations seek stronger economic positions.
- The concept is often analyzed in the context of globalization and international trade agreements.
Origin of 'mercantilism'
The term 'mercantilism' originated in the late 18th century from French 'mercantilisme', which was derived from 'mercantile' meaning 'related to trade'. The concept of mercantilism was prevalent during the colonial era when European powers sought to control and exploit overseas territories for economic gain.