mercantilism

noun

Etymology: Etymology tree Proto-Italic *merks Latin merx Latin mercor Latin mercantem Italian mercante Latin -īlemder. Italian -ile Italian mercantilebor. French mercantilebor. English mercantile Proto-Indo-European *-id- Proto-Indo-European *-yéti Proto-Indo-European *-idyéti Proto-Hellenic *-íďďō Ancient Greek -ῐ́ζω (-ĭ́zō) Proto-Indo-European *-mos Proto-Indo-European *-mós Ancient Greek -μός (-mós) Ancient Greek -ισμός (-ismós)der. English -ism English mercantilism From mercantile + -ism.

1. The theory that a nation must always have a positive balance of trade, in the manner that a merchant would operate a shop. Typically this model presupposes protectionism.
2. The theory that holds that the prosperity of a nation depends upon its supply of capital, and that the global volume of trade is unchangeable.