Between 1600 and 1800 most of the states of western Europe were heavily influenced by a policy usually known as mercantilism. This was essentially an effort to achieve economic unity and political control.
The meaning of mercantilism This term was initially used solely by critics, such as Mirabeau and Smith, but was quickly adopted by historians. Originally the standard English term was "mercantile system". The word "mercantilism" was introduced into English from German in the early 19th century. No general definition of mercantilism is entirely satisfactory, but it may be thought of as a collection of policies designed to keep the state prosperous by economic regulation.
The representative ideas of the mercantilism Each nation tried to achieve economic self-sufficiency. Those who founded new industries should be rewarded by the state. Regulated commerce could produce a favorable balance of trade. In general, tariffs should be high on imported manufactured goods and low on imported raw material. Sea power was necessary to control foreign markets. A powerful merchant fleet would obviate the necessity of using the ships of another nation and becoming dependent on foreign assistance. In addition, a fleet in being could add to a nation's prestige and military power. Colonies could provide captive markets for manufactured goods and sources of raw material. State action was needed to regulate and enforce the above policies. One might add that there was nothing logical or consistent about mercantilism, and that it displayed, in fact, enormous variation.
ideology One key aspect of Mercantilist ideology was the theory of nationalism, a theory which was in many respects against what we would today call the spirit of individual freedom and human rights.
Mercantilism defined the basic ideology that dominated in western Europe and western civilization in the 1600s and even in later epochs. The mercantilist ideology was one of the mainstream ideologies of that epoch and it proved to be so powerful and significant that it had managed to replace Christianity as the dominant ideology, though mercantilism has preserved some elements of Christianity, adapting its ideas and beliefs to more pragmatic theoretical assumptions of mercantilism.
The mercantilist were those that gave rise to economic protectionism and state intervention in the economy. the mercantilism was replaced by the market economy, (Adam Smith). Guatemala would be mercantilist if for example, instead of importing ready-made clothing, we would produce it. We have Raw materials as cotton; we also have labor people to produce clothes.