Life and Works of Rizal Practice Exam

Mercantilism centers on the idea that a nation’s wealth and power come from its stockpile of precious metals, especially gold and silver. Since metals are seen as finite, the state strives to accumulate bullion by promoting a favorable balance of trade (exports over imports), restricting imports, and often pursuing colonial and monopolistic policies to bring wealth into the homeland. This focus on bullion as the measure of national strength distinguishes mercantilism from other doctrines that emphasize individual freedoms, or social ownership and distribution rather than monetary reserves.