Mercantilism refers to an “economic theory and practice common in Europe from the 16th to the 18th century that promoted governmental regulation of a nation’s economy for the purpose of augmenting state power at the expense of rival national powers” (“Mercantilism,” 2019). As a policy, it was developed in Western Europe between the Renaissance and the Industrial Revolution and
holds that states should increase their exports and decrease their imports. It was closely related to the evolution of the state-system of Europe insofar as it
advanced a state-centered structure of international relations (Evans and Newnham, 1998: 321). Wallerstein argues that mercantilism in the 17th century was a policy of economic nationalism centered on strong trade balances and the acquisition of bullion (Wallerstein, 2011: 37-38). Implemented to establish strong and self-sufficient economies, the goal was to maximize exports and minimize the import of raw materials (Sander,2001: 94).