Question

What does Mercantilism refer to?

Answer 1

Mercantilism refers to a number of prevailing economic theories applied by the state in its effort to attain wealth and power. Spain in the sixteenth century was the richest and most powerful in the world. Spain’s power and wealth were found in the treasure pouring into Spain from its colonies. The more colonies a country had, the richer it would be. In sum, European countries pursued Mercantilism as a kind of national economic policy designed to maximize their trade, especially to maximize the accumulation of gold and silver.