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# Mercantile System Principles

## Definition

The economic doctrines underlying colonial monopoly policies, including the belief that national wealth consists of precious metals, that trade is a zero-sum game, and that colonies exist primarily to benefit the mother country through controlled commerce. These principles justify restrictive trade practices.

## Source Chapter

Book IV, Chapter 7

## Context

Smith systematically critiques mercantile system principles throughout his analysis of colonial policy, demonstrating how these doctrines lead to economically harmful practices. He argues that the system's focus on precious metals and monopoly profits obscures the true sources of national wealth and prosperity.

## Economic Domain

General Theory

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