Explain the economic system of mercantilism. How does the era of exploration impact its development?

1. Mercantilism is a form of economic nationalism that promotes protectionist trade, high tariffs, and extreme independence from foreign economies. This formed mostly due to trade wars and colonialism during the Enlightenment Era.

2. Exploration allowed for extreme forms of imperialism, allowing countries to exploit tremendous amounts of natural resources. This period also saw the development of our modern economic systems and models, creating a need to expand the GDP of countries. These two issues are furthered promoted by the rise of nationalism and xenophobia in Europe.