Mercantilism is an economic theory and nationalist policy that was dominant in Europe from the 16th to the 18th centuries. It aims to increase a nation's wealth and power by maximizing exports and minimizing imports to achieve a favorable balance of trade. This approach is based on the belief that the world's wealth is static, so countries must accumulate as much wealth as possible, primarily in the form of gold and silver reserves

. Key features of mercantilism include:

• Government regulation of the economy to bolster state power, including high tariffs on imports and support for domestic industries

• Promotion of exports over imports to build monetary reserves and maintain a trade surplus

• Protectionism through tariffs, subsidies, monopolies, and restrictions on imports to support local producers and merchants

• Encouragement of a large working population to supply labor and maintain armies

• Use of colonies to provide raw materials and markets for finished goods, keeping wealth within the empire

• The view of economic activity as a zero-sum game, where one nation's gain comes at the expense of another

Mercantilism often led to colonial expansion and conflicts as nations competed for resources and markets. It was eventually supplanted by free-trade economic theories in the mid-18th century but still influences some modern economic policies characterized by protectionism and economic nationalism