Mercantilism Theory:

• A political economy system developed in the 16^th century by the European states to enrich their nations

• Aimed at generating wealth by limiting imports and encouraging exports

• Under such theory, the economic growth of a country was managed through International Trade to serve the country’s merchants and entities.

• Example like the British East India Companies whereby their activities were protected by the country. Somewhat like Merchant Capitalism which relied very heavily on Protectionism.