what is the goal of mercantilism

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what is the goal of mercantilism

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The goal of mercantilism was to maximize a nation's wealth and power by achieving a favorable balance of trade, which means exporting more than importing. This was intended to increase the supply of gold and silver within the country, as precious metals were seen as the basis of national prosperity and strength. Mercantilism aimed to accumulate monetary reserves through export surpluses, especially of finished goods, while minimizing imports to prevent the outflow of wealth. It also sought to support domestic employment and economic self-sufficiency by encouraging agriculture, manufacturing, and the use of colonies for raw materials and markets. The overall objective was to build national power by regulating the economy through tariffs, trade restrictions, and state intervention to protect local industries and maintain a strong merchant fleet

. In summary, mercantilism focused on:

  • Maximizing exports and minimizing imports to build a trade surplus.
  • Accumulating gold and silver as a measure of national wealth.
  • Using colonies for raw materials and as captive markets.
  • Promoting domestic production and employment.
  • Employing government regulation and protectionism to achieve these ends
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