What economic theory emphasizes the importance of trade and accumulation of wealth for national strength?

Mercantilism is the correct answer because it is an economic theory that emerged in the late medieval period and dominated European economic thought from the 16th to the 18th century. Mercantilism emphasizes that a nation’s wealth and power are best served by increasing exports and collecting precious metals in return. This theory posits that a country’s strength is directly linked to its economic prosperity, which can be achieved through a favorable balance of trade.

Under mercantilist policies, governments sought to regulate their economies to enhance national power, facilitating trade agreements that favored their own interests while restricting imports to protect domestic industries. This involved establishing colonies that provided raw materials and markets for goods, further embedding trade as crucial to a nation’s economic strategy and overall strength.

In contrast, capitalism focuses on private ownership and free markets without the intent of maximizing national wealth at the same level as mercantilism. Socialism advocates for collective or government ownership of the means of production, which does not align with the mercantilist drive for national wealth through trade. Feudalism, by its nature, is an economic and social system based on land ownership and the obligations of vassals to lords, which does not emphasize trade or the accumulation of wealth to bolster national