Mercantilism is an economic policy that believes that trade generates wealth and that the economy is stimulated by the accumulation of profitable balances. It is also stated that the government should maintain strong control over the economy through protectionism, meaning that the economy should be protected from foreign competition by taxing imports. This economic theory formed an important part of European politics in the 17th and 18th centuries. Notable examples of the use of this concept include the economic policies of Jean-Baptiste Colbert in France, the adoption of the principles in Great Britain, and its effect on Colombian exchange. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The height of French mercantilism was seen under the reign of King Louis XIV, but more specifically under the control of his finance minister, Jean-Baptiste Colbert. Colbert promoted a favorable trade balance that limited imports and expanded exports. This would help bring in more gold, as the country would have to sell more products than it bought. Colbert also believed that it was crucial for France to become economically self-sufficient, thus stopping the flow of gold to other countries. The expected effect of this policy would make France the richest country in Europe. Colbert also adopted high taxes on French commoners, with no taxes on nobles. This was supposed to help support the self-sufficient French economy, but this caused suffering to the agricultural economy, indirectly leading to the French Revolution in the 18th century. Colbert's influence and regulation of the French economy is the most prominent example of European mercantilism. Mercantilist policies were also adopted in Great Britain and its colonies, reaching its peak during the age of Oliver Cromwell (1640-1660). Examples of policies include the act of imposing tariffs on imports and bounties on exports. This embodies the mercantilist policy of encouraging exports and discouraging imports. England also adopted the Navigation Acts, which expelled foreign merchants from English trade. This put increased pressure on the British colonies (particularly those in North America), thus indirectly leading to the American Revolution. However, the adoption of these policies transformed Britain into the world's leading trader, thus transforming the country into an international superpower that would last until the end of the 19th century. Strict mercantilist regulations in European countries stimulated what is now known as the Columbian Exchange. Imports from England went to Africa for trade purposes, which sent slaves to America, who would grow produce sent back to England. This narrow trading circle, closely linked to British policies, exemplifies the severity of British mercantilist policies. However, the rigid trade route that brought new products from the British colonies would make Britain an example of a perfect mercantilist economy. By setting this example, Britain was able to establish itself as an international superpower (as mentioned above). Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Mercantilism discourages free trade, promotes protectionism, and uses profitable balances. This economic policy is therefore mostly extinct from modern economies, with most adopting free trade policies. Many disagree with this policy, believing instead that the best way to stimulate an economy is through..