Mercantilism

Definition

Mercantilism is an economic theory that advocates for a positive balance of trade, where a country exports more than it imports. It was popular during the 16th to 18th centuries and often involved the mother country exploiting its colonies for resources.

Related terms

Protectionism: This is an economic policy that restricts imports from other countries through methods such as tariffs, quotas, and subsidies. It's like putting up fences around your property in Monopoly to protect it from others.

Colonialism: This refers to the practice by which a powerful country directly controls less powerful ones and exploits them for their resources. It's like taking over someone else's properties in Monopoly.

Trade surplus: This occurs when a country exports more than it imports. In our Monopoly analogy, this would be like earning more money from other players landing on your properties than you pay when you land on theirs.