Capitalism (also called free market economy or free enterprise economy) is an economic system based on the private ownership of the means of production and their operation for profit dominant in the Western world since the breakup of feudalism. Under this system, merchants were able to conduct unrestricted international trade.
Mercantilist economic theory and practice common in Europe from the 16th to the 18th century that advocated that a nation should export more than it imported and accumulate bullion to make up the difference. Mercantilist theorists believed that the amount of wealth in the world was static. On the other hand, under this one, international trade was restricted.
