Mercantilism Economic assets or capital, are represented by bullion (gold, silver, and trade value) held by the state, which is best increased through a positive balance of trade with other nations (exports minus imports) and assumes wealth and monetary assets are identical. Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy; by encouraging exports and discouraging imports, notably through the use of tariffs and subsidies.
Home / Questions / Which economic theory that was the dominant school of thought throughout the early modern period holds that the prosperity of a nation is dependent upon its supply of capital and that the global volume of international trade is unchangeable?