Explain briefly what is Mercantilism Theory in International Trade

Append below a table to briefly explain what is Mercantilism Theory:

Mercantilism Theory:

  • A political economy system developed in the 16th 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‚Äôs 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.

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