What does mercantilism mean?
Mercantilism is an economic doctrine that became especially influential in Europe from the 16th to the 18th centuries. It held that a nation's wealth and political power depended on its ability to sell more goods abroad than it bought from other countries. Governments supported exports, restricted imports, regulated colonial trade, and sometimes sought to attract precious metals. Mercantilist policies varied considerably across states and centuries, so the term describes a broad historical family of practices rather than one fixed system. The concept is still useful for analyzing trade policy because it highlights the idea that commerce can serve national power and strategic interests. In modern debate, the word may be used loosely for strongly nationalist commercial policies, but this can obscure important differences between historical mercantilism and contemporary forms of protectionism.
nounMercantilism is an economic doctrine that a nation should increase its wealth by maintaining a favorable balance of trade, promoting exports, and restricting imports. Historically associated with colonial empires, it often involved state regulation of commerce and the accumulation of precious metals.
- The economic doctrine and associated policies that seek to increase national wealth, especially by promoting exports, restricting imports, and maintaining a favorable balance of trade.
- A historical system of state-directed commerce associated with European empires and the period roughly from the 16th through the 18th centuries.
"The colony's mercantilist regulations required its merchants to export valuable goods to the mother country."
"Mercantilism encouraged Britain to build a powerful merchant fleet and expand overseas trade."
"The historian described the decline of mercantilism as a major change in European economic thought."
The plural is uncommon because the word normally names a historical doctrine or general approach rather than an individually countable entity.
"Historians have compared the mercantilisms of several European empires without treating them as identical systems."
Mercantilism treated a country's trade balance like a national scoreboard: exports were a triumph, and imports were a loss.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does mercantilism come from?
The English word comes through French mercantilisme, from mercantil, a term associated with merchants and trade. These words ultimately relate to Latin roots meaning trade or merchandise, which also produced cognates such as merchant, commerce, and mercantile. The political and economic doctrine developed its recognizable form during the early modern period, especially in European maritime empires.
Related word forms
How mercantilism is actually used
The term is primarily historical when referring to a recognized European economic system, but it can also be used analytically to describe modern policies that strongly favor national commercial interests. It usually has a critical or analytical connotation rather than serving as a neutral everyday description.
Easily confused with mercantilism
Mercantilism is a broader doctrine linking national power and commercial policy, whereas protectionism specifically denotes measures that shield domestic industries from foreign competition.