713 B
713 B
Mercantile System
Definition
An economic doctrine that seeks to enrich the nation by promoting exports and restricting imports, based on the belief that national wealth consists of accumulated precious metals and that a favourable balance of trade is essential for prosperity.
Source Chapter
Book IV, Chapter 5
Context
Smith presents the mercantile system as the intellectual framework that justifies bounties and other trade restrictions. He systematically criticizes its core assumptions about wealth creation and trade balance.
Economic Domain
General Theory