What were the main weaknesses of the mercantilist trade system?
Answer (1)
Mercantilism focused too much on exports and hoarding gold, which created unfair competition. Countries tried to be self-sufficient and blocked imports with high taxes. In the long run, this hurt both consumers and smaller economies.For instance, Spain used the Philippines to gather spices and gold, but locals didn’t benefit much. It limited trade, ignored local development, and created a “win-lose” situation instead of mutual benefit. That’s why it was eventually replaced by the idea of free trade.
