Mercantilism is created to protect both government and the
merchants. In the past, mercantilism was the main source of Great Britain
economic development. Mercantilism is
one of the way government s to create economic policies as well as create money
reserves from the taken from trade.
Mercantilism was the set of economic ideas and practices adopted and developed in Europe during the phase of commercial capitalism. Mercantilism was intended to establish government policies that would favor traders and protect the country's economy.
Mercantilism is characterized by representing state intervention in the economy, creating a series of protectionist processes that ensured enrichment based on the amount of capital stored in its coffers. It was the bourgeoisie and the nobility who made the most of this economic system.
Mercantilist policy is based on the idea that the wealth and development of the country was proportional to the amount of precious metals (mainly gold and silver) in their possession. The greater the accumulation of these riches, the greater the prestige and respect that the country would have among other nations.
