Answer:
The main idea behind the theory of mercantilism was that a country should accumulate wealth by exploiting the domestic and foreign markets.
Explanation:
Mercantilism was a set of practices applied by European nations in different ways, but with the aim of accumulating wealth. This variation in the ways of practicing mercantilism occurred according to the interests and the reality of each country. Anyway, the main characteristics that defined mercantilism were:
- Metalism: Also known as bulionism, this principle consisted in defending the accumulation of precious metals as the principal means of obtaining wealth. This practice coincided exactly with the period when the Spanish brought in huge quantities of precious metals from their colonies from America.
- Colbertism: It is seen, in part, as the opposite of the metalism practiced by the Spanish. This practice was adopted by the French under the influence of Jean-Baptiste Colbert and was characterized by the encouragement of manufacturing development as a way of attracting foreign currency and, consequently, wealth. It also advocated a policy of limiting internal spending.
- Favorable trade balance: This theory argued that the sum of a state's trade transitions should be positive, that is, the volume of goods sold should be greater than the volume of goods purchased.
Other important points to consider about mercantilism: incentive to manufacturing development, incentive to the construction of vessels (basis for the commercial expansion at the time), customs protectionism (imposition of taxes on foreign goods).
