Ever since Britain abandoned this in favour of something more politically correct and less high maintenance, the country produces nothing except fat tourists and the economy's gone to complete pot.

Mercantilism is similar to oligrachy, in that it is both widespread and often beneficial-though it has a bad reputation and no modern government dares admit to it. Mercantilist policies were crucial to the development of Venice (the most successful polity of the Middle Ages, based on oligrachial rule and mercantilist policies). Mercantilism was also responsible for the economic development of Holland, France, Britain, German, Japan, South Korea, Taiwan, modern China, and nearly every other industrial nation that exists today. Modern mercantilism includes the use of subsidies and tariffs to protect infant industries, predatory pricing, patent piracy, the requirement of foreign corporations to outsource production rather than export, and the manipulation of exchange rates to encourage exports. While mercantilist policies are virtually indispensable for the creation of industrial states, most governments are far too corrupt to implement them properly, which largely accounts for mercantilism's bad reputation. Mercantilism also played a role in crashing the Japanese economy in the 90s, as the Japanese foolishly persisted in mercantilist policies long after they had served their purpose; practiced in advanced economies, mercantilism does more harm than good. For these and other reasons, most economists denounce mercantilism as heresy. Political scientists and economic historians are more realistic, and have provided several convincing accounts of successful mercantilism, ranging from Medieval Venice to Modern China.

Monarchistic primitive imperialistic capitalism.

While this may seem like an archiac system of a bygone era, America is currently using what can best be discribed as neo-merchantilism, in which they are using political and economic pressure to exploit poorer countries in much the same manner that the British empire expoited her colonies.

It turned britain into a superpower in the 1900's and led them to control many countries. Without that control they would probably have ended up with more dictators and less democracy. If the power had held up in america fo a bit longer then there probably wouldn't be so many problems there today

Good for the mother country; bad for the colonies.

A moot ideaology that served it's purpose rather rudely to those that were exploited under it's guise. Mercantilism arose out of the miserable ashes of feudalism in the late 1400's and emphasized national gain over local needs. Mercantilsim's emphasis on population growth was necessary in post plague Europe and fostered military growth, especially for Navies. A strong Navy was needed to increse foreing trade (read: get over to the obscure corners of the world where goods and indigenous people were plundered and exploited) and to counter the threat of piracy. Mercantilism also placed tight restrictions on inports and exports even if it meant selling wheat at domestic prices at a loss over foreign ones. Colonialism was probably the most controversial aspect of Mercantilsm as it gave a controlled market for manufactured goods and profitable charter companies for governments. As far as this being a system striving to attain favorable balance of trade, that is highly debatable and government use of charter companies and tight import/export laws left many capitalists resentful and resorted to smuggling to get around it. This system served it's purpose, but it exploited millions and created a formidable laizzes-faire backlash that carried well into the 19th and 20th centuries.

Well this was one of Lincoln's most highly regarded ideas for America, thus earning it no more than 1 star from me.

It's sad to think that America still does this for goods like sugar and coffee and DIAMONDS and OIL!The Spaniards anhilated the Aztecs,Incans,and Mayans for Mercantilism,and now America is attacking small,nearly defenseless countries like Iraq,and starting civil wars in Africa over the Diamond trade.

now you know what is wrong with the u.s.economy. abichara1882.

A workable polity if a little crass.

I am not a big fan of mercantilism. This economic ideology took hold during the 1500's around the time that European explorers were reaching the Americas. This ideology is the root cause of the current international division of labor that exists in the world today. Most people would probably know mercantilism as colonialism. Countries would maintain the balance of trade by establishing colonies outside of Europe. These colonies would be in effect Europe's "large mine of raw materials and labor". Many times, these colonies produced cheap labor and raw materials that countries back in Europe would turn into finished goods. This ideology is the direct opposite of free trade, where the free exchange of goods and ideas would be encouraged. Cultures were kept from innovating because of the lack of free competition that mercantilism created. This ideology caused plenty of social displacement that is evident through today. Cultures and technologies were lost, conflicts were started, and slavery was encouraged because of mercantilism. This ideology began to lose its status around the 19th Century as the Enlightenment took root and free trade ideals became the norm.