Meaning & use

mercantilism

noun·Academic

An economic theory holding that a nation's wealth and power grow by exporting more than it imports and hoarding gold.

See it in a sentence

Mercantilism shaped European trade policy for centuries as nations guarded their gold reserves.

Under mercantilism, colonies existed mainly to supply raw materials to the home country.

A note on using this word

Contrast with laissez-faire and free-market economics, which reject state control of trade for national wealth accumulation.

Words with a similar meaning

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Words with an opposite meaning

free trade

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