Page "Capitalism" Paragraph 32

Mercantilism is a nationalist form of early capitalism that came into existence approximately in the late 16th century.

It is characterized by the intertwining of national business interests to state-interest and imperialism, and consequently, the state apparatus is utilized to advance national business interests abroad.

An example of this is colonists living in America who were only allowed to trade with and purchase goods from their respective mother countries ( Britain, France, etc .).

Mercantilism holds that the wealth of a nation is increased through a positive balance of trade with other nations, and corresponds to the phase of capitalist development called the Primitive accumulation of capital.