mercantilism: meaning, definition, pronunciation and examples

No. Mercantilism predates capitalism. It is a state-centric system focused on trade balances and bullion accumulation, often involving heavy government control. Capitalism is typically characterised by private ownership, market competition, and less direct state management of production.

No country adheres to classical 17th-century mercantilism. However, the term 'neo-mercantilism' is sometimes used critically to describe modern nations that aggressively promote exports, restrict imports, and run large trade surpluses through state intervention.

Classical economists like Adam Smith argued it was a zero-sum fallacy that confused wealth with money (bullion). They contended it led to wasteful trade wars, protected inefficient industries, and harmed consumers through higher prices and limited choices.

Mercantilism was gradually superseded in the 18th and 19th centuries by ideas of economic liberalism, free trade, and laissez-faire capitalism, as espoused by thinkers such as Adam Smith and David Ricardo.

An economic theory and practice dominant in Europe from the 16th to the 18th century, which advocated that a nation's wealth and power were best served by increasing exports and accumulating precious metals, often through government regulation of the economy and colonial expansion.

Mercantilism is usually academic / formal in register.

Mercantilism: in British English it is pronounced /ˈmɜː.kən.taɪ.lɪ.zəm/, and in American English it is pronounced /ˈmɝː.kən.tə.lɪ.zəm/. Tap the audio buttons above to hear it.