Meaning & use
mercantilism
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Meanings
noununcountablebusinessspecialist
An economic belief that a country grows rich and strong by selling more abroad than it buys and by collecting gold and silver.
Grammar: Uncountable; usually used for the system in history: European mercantilism.
Patterns
- the mercantilism of something
Mercantilism shaped the trade policies of Britain and France for two centuries.
Under mercantilism, colonies were valued as sources of raw materials.
Adam Smith criticized mercantilism in The Wealth of Nations.
noununcountabledisapproving
Any modern policy that tries to boost exports and limit imports to protect a country's trade surplus.
Grammar: Often used with neo or modern as a criticism.
Patterns
- modern mercantilism
- neo-mercantilism
Critics accused the government of modern mercantilism.
High tariffs and export subsidies are signs of mercantilism.
The trade dispute revived talk of mercantilism.
Common combinations
- classical mercantilism
- Classical mercantilism ruled European trade in the 1600s.
- neo-mercantilism
- Economists warned of neo-mercantilism in global trade.
- era of mercantilism
- The era of mercantilism saw many trading companies grow.
- critique of mercantilism
- Smith wrote a famous critique of mercantilism.
Synonyms and how they differ
- protectionism
- Protectionism is the broader policy of shielding domestic industry with tariffs, while mercantilism is a whole theory about national wealth.
- economic nationalism
- Economic nationalism puts a country's interests first in trade and is a modern term, unlike the historical mercantilism.
Opposites
Word family
- mercantilist noun
- a supporter of mercantilism
- mercantilist adjective
- relating to mercantilism
- mercantile adjective
- relating to trade or merchants
- merchant noun
- a person who buys and sells goods
Commonly confused: mercantilism or mercantile?
mercantilism vs mercantile
Mercantile is an adjective meaning relating to trade, while mercantilism is the noun for the economic doctrine.
Practice
A government that restricts imports and urges exports to build up reserves of gold is following ___.
Choose one answer.
Mercantilism links national wealth to a trade surplus and bullion. Laissez-faire is the opposite, favoring minimal government interference in trade.
Make it your own
Write a sentence using “mercantilism”, then check it and compare it with the examples above.