MERCANTILE SYSTEM Meaning and
Definition
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The mercantile system, also known as mercantilism, is an economic policy and theory that dominated Europe from the 16th to the 18th century. It is a political and economic system centered around the belief that a nation's wealth and power are measured by its accumulation of precious metals, particularly gold and silver. Under the mercantile system, governments aimed to promote exports and restrict imports in order to maximize the inflow of gold and silver.
This policy was characterized by government intervention and regulation of the economy. Governments would establish monopolies, provide subsidies, and impose tariffs and other trade barriers to protect domestic industries and promote local production. The goal was to achieve a positive balance of trade, where exports exceeded imports. This excess would result in the inflow of specie (gold and silver) into the country.
The mercantile system was aimed at promoting economic self-sufficiency and strengthening the state's economic and military power. It prioritized the accumulation of wealth for the nation as a whole, as opposed to individual economic prosperity. The government controlled and regulated economic activities to ensure a favorable trade balance and ensure the nation's economic stability and security. The mercantile system gradually fell out of favor in the 18th century with the emergence of new economic theories, such as free trade and capitalism, which emphasized market forces and individual enterprise.
Common Misspellings for MERCANTILE SYSTEM
- nercantile system
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Etymology of MERCANTILE SYSTEM
The word "mercantile" derives from the Latin word "mercāns", which means "merchant" or "trading". It entered the English language in the 17th century. The term "mercantile system" refers to an economic theory or practice that emphasizes the accumulation of wealth through trade and commerce. The etymology of "system" traces back to the late Latin word "systēma", borrowed from the Greek word "systēma", meaning "organized whole" or "composition".
Similar spelling words for MERCANTILE SYSTEM
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