Mercantilism was an economic theory and practice that was prevalent in Europe from the 16th to the 18th centuries. The basic idea of mercantilism is that a country's wealth is measured by its holdings of gold and silver, and that a nation should strive to export more than it imports, thereby accumulating bullion (gold and silver). Here are some of the key principles of mercantilism:

• A country's economic strength depends on its ability to accumulate gold and silver reserves.
• A nation should aim to have a positive trade balance (exporting more than it imports).
• Tariffs and subsidies should be used to promote exports and discourage imports.
• Colonies should be established to provide a market for exports and a source of raw materials.
• Governments should intervene in the economy to achieve these goals.