What is 'Mercantilism'?

Mercantilism was the primary economic system of trade between the 16th and the 18th centuries with theorists believing that the amount of wealth in the world was static. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Mercantilism Mercantilism was an economic system of trade that spanned from the 16th century to the 18th century. Mercantilism was based on the principle that the world's wealth was static, and consequently, many European nations attempted to accumulate the largest possible share of that wealth by maximizing their exports and by limiting their imports via tariffs. Read More » Related to "Mercantilism" Mercantilism and the Colonies of Great Britain Exploring the effects of British mercantilism on the colonial economy and well-being of its imperial colonies, especially in America. Read More » Hong Kong vs. Mainland China: What's the Difference? The century-long separation between mainland China and Hong Kong created political and economic gaps that cannot be easily bridged. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » The Basics of Tariffs and Trade Barriers Everything you need to know about trade barriers and tariffs, why they are used, and their effects on the local economy. Read More » This Week's Investopedia Express Podcast is Live! On The Investopedia Express this week: What investors need to hear from the Federal Reserve at its last meeting before the U.S. elections, U.S. tech giants are cozying up to India's Reliance Industries, and how individual investors should interpret volatility, with Liz Ann Sonders, the Chief Investment strategist at Charles Schwab. Listen now on: Apple Podcasts » Spotify » Google Podcasts » Related Definitions Tariff A tariff is a tax imposed by one country on the goods and services imported from another country. Read More » Balance of Trade Balance of trade is the difference between a country's import and export payments and is the largest component of a country's balance of payments. Read More » Fiscal Policy Fiscal policy uses government spending and tax policies to influence macroeconomic conditions, including aggregate demand, employment, and inflation. Read More » Trade War A trade war arises when one country retaliates against another by raising import tariffs or placing other restrictions on the other country's imports. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy