MERCANTILIST Meaning and
Definition
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A mercantilist is an economic concept that refers to a person, nation, or economic system that practices or adheres to mercantilism. Mercantilism is an economic theory that was prevalent from the 16th to the 18th centuries. It is based on the belief that the wealth and power of a nation were determined by the accumulation of precious metals, particularly gold and silver. The primary objective of a mercantilist system is to ensure a favorable balance of trade, where a country exports more than it imports, thereby causing an inflow of gold and silver.
A person or nation adopting a mercantilist approach seeks to protect domestic industries, limit imports, and promote exports in order to maintain a positive trade balance. This is usually achieved through the implementation of protectionist policies, such as tariffs, subsidies, and regulations, to restrict foreign competition and encourage local production.
Mercantilists also advocate for the accumulation of colonies as a means to secure valuable resources and markets. They believe that a strong military and navy are essential for protecting trade routes and maintaining economic dominance.
However, mercantilism has been largely discredited by modern economic theories, such as classical economics and international trade theory. Critics argue that it promotes a zero-sum game mentality and hinders economic growth by limiting competition and discouraging specialization. Nonetheless, understanding mercantilism is essential for comprehending the historical development of economic systems and trade policies.
Common Misspellings for MERCANTILIST
Etymology of MERCANTILIST
The word "mercantilist" derives from the term "mercantilism", which originated from the Latin word "mercantilis". In Latin, "mercans" means "trader" or "merchant", and "-ilis" is a suffix indicating a characteristic or tendency. So, "mercantilis" referred to something related to merchants or trade.
The term "mercantilism" originated in the mid-18th century to describe the economic system prevalent during that time. Mercantilism emphasized economic policies promoting trade, colonies, accumulation of wealth through exports, and government regulation to protect domestic industries. Over time, the term "mercantilist" evolved to describe individuals or groups adhering to mercantilist principles or supporting such policies.
Similar spelling words for MERCANTILIST
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