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Mercantilism
Economic policy using colonies for national wealth.
Favourable Balance of Trade
Exporting more than importing for economic gain.
Trade Surplus
Excess of exports over imports.
Economic Self-Sufficiency
Nation's ability to produce its own goods.
Colonial Benefits
Colonies provide cheap raw materials for the mother country.
Captive Market
Colonies restricted to buying home country goods.
Demise of Mercantilism
Resistance to mercantilism led to economic changes. Book “Wealth of Nations” and American Revolution contributed to the decline of mercantilist policies, promoting free trade and capitalism.
Adam Smith
Scottish economist advocating for capitalism over mercantilism. Author of “Wealth of Nations”.
Wealth of Nations
Smith's 1776 book opposing government-controlled wealth.
Basic Capitalist Principles
Goods produced for profit through individual self-interest.
Supply and Demand
Market forces determining prices of goods.
Competition
Market rivalry increasing efficiency and innovation.
Invisible Hand
Self-regulating nature of free markets.
Laissez Faire
Government non-interference in economic activities.
Consumer Protection
Market principles safeguarding consumer interests.
Note 
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