1. The Basic Principles of Mercantilism
Mercantilism - an economic policy under which nations sought to increase their wealth and power by obtaining large amounts of gold and silver and by selling more goods than they bought.

2. A nation’s strength depends on its wealth which is measured in gold and silver.

3. 2. Only a limited amount of wealth exists in the world and nations have to compete for their share of that wealth.

4. 3. A favorable balance of trade is important in gaining and keeping wealth.

5. 4. Countries should limit imports and maximize exports.

6. 5. A country should have its own source of raw materials to avoid dependence on others.

7. 6. Colonies exist only as a way for the home country to make money.

8. 7. A country’s colonies should not trade with other countries