What is the essence of "mercantilism" as an economic theory?

Mercantilism is an economic theory that emerged in the late medieval and early modern periods, characterized by the idea that the wealth of a nation is best served by maximizing exports and minimizing imports. The essence of mercantilism lies in the belief that the wealth of a nation is significantly linked to its state intervention in the economy, with a strong emphasis on promoting national power through economic means.

The role of the state in managing the economy is central to mercantilism, as it advocates for government policies that protect domestic industries, impose tariffs on imports, and foster a favorable balance of trade. By ensuring that the nation accumulates precious metals and maintains a strong economic position, mercantilism ties the economy closely to national interests and power, suggesting that economic strength translates directly into political and military strength.

Other concepts, such as free trade, individual profit maximization, or global economic cooperation, do not align with the core principles of mercantilism, which prioritizes state control and intervention over laissez-faire market practices or cooperation among nations.