mercantilism

American  

[mur-kuhn-ti-liz-uhm, -tee-, -tahy-] / ˈmɜr kən tɪˌlɪz əm, -ti-, -taɪ- /

noun

1. mercantile practices or spirit; commercialism.

2. mercantile system.

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mercantilism British  

/ ˈmɜːkəntɪˌlɪzəm /

noun

1. Also called: mercantile system.  economics a theory prevalent in Europe during the 17th and 18th centuries asserting that the wealth of a nation depends on its possession of precious metals and therefore that the government of a nation must maximize the foreign trade surplus, and foster national commercial interests, a merchant marine, the establishment of colonies, etc

2. a rare word for commercialism

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mercantilism Cultural  

1. An economic doctrine that flourished in Europe from the sixteenth to the eighteenth centuries. Mercantilists held that a nation's wealth consisted primarily in the amount of gold and silver in its treasury. Accordingly, mercantilist governments imposed extensive restrictions on their economies to ensure a surplus of exports over imports. In the eighteenth century, mercantilism was challenged by the doctrine of laissez-faire. (See also Adam Smith.)

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Discover More

The European quest for colonial holdings in Asia, Africa, and North and South America was partially a product of mercantile economics.

Other Word Forms

Derived Forms

• mercantilist
  noun
• mercantilistic
  adjective

Etymology

Origin of mercantilism

From the French word mercantilisme, dating back to 1870–75. See mercantile, -ism

Compare meaning

How does mercantilism compare to similar and commonly confused words? Explore the most common comparisons:

• mercantilism vs. capitalism

Explanation

Mercantilism, also called "commercialism,” is a system in which a country attempts to amass wealth through trade with other countries, exporting more than it imports and increasing stores of gold and precious metals. It is often considered an outdated system. The noun mercantilism came from the Latin mercāns, or "buyer." It was a system that encouraged the idea of government trade regulation to gain wealth, a move away from agriculture system as an economic base. Although largely rejected today, it was the main school of economic thought from the 15th through the 18th Centuries, and was the push behind much of the exploration and colonization of other lands — and many of the wars — that happened during that time.

Example Sentences

Mercantilism also assumed that the world’s wealth as measured in gold and silver was finite, so a gain for one nation was a loss for another.

From Textbooks • Dec. 14, 2022

Mercantilism worked well enough, but commerce fit awkwardly into its paradigm.

From Textbooks • Jan. 1, 2020

Mercantilism, the dominant economic theory of the early modern period, held that hunger incentivized work and kept wages low.

From New York Times • Sep. 11, 2018

Mercantilism: Modern-day economists don’t have much time for mercantilism, an outdated philosophy that equates national prosperity with exports.

From The Wall Street Journal • Jul. 1, 2016

Mercantilism was still in the ascendant when Adam Smith came to write.

From Political Thought in England from Locke to Bentham by Laski, Harold Joseph