What is mercantilism?
Answer:
Mercantilism is the trade policy pursued by the french pre-EU. It is basically the notion that for a country its more benefitial to export than to import and favours the imposition of protectionist schemes such as tariffs or quotas. In truth however this theory has greatly been disproven because of the notion of comparative advantage that states its a lot cheaper to import a good than to try to be self sufficient.
Mercantilism is an economic theory that holds that the prosperity of a nation depends upon its supply of capital, and that the global volume of trade is "unchangeable".
Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy, by encouraging exports and discouraging imports, especially through the use of tariffs. The economic policy based upon these ideas is often called the mercantile system.
Mercantilism was established during the early modern period (from the 16th to the 18th century).
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