International trade has grown, not because the world has become a global village. Our medieval tales are full of stories of a merchant from Venice, silk traveling west, or pirates ruling the seas. Merchant navies were created to thwart threats of war and piracy. If you want to get more information about international trade, you can visit this link.
In simple terms, mercantilism means that a country must export more than it imports. Mercantilists viewed the economic system as a series of zero-sum games in which one country's gains were turned into another's losses.
The term trade balance, trade balance, or net exports (NX) refers to the difference between the monetary value of exports and imports in an economy over a period of time.
This domestic production must be strongly encouraged, where the rules must be observed that all raw materials in a country are used in local production. Only raw materials may be imported, no finished products. When imported, it must be processed into finished products domestically.
Importing foreign goods should be prevented as much as possible, especially if similar goods are produced domestically.
That certain imports, if absolutely necessary, must first be obtained with other domestic goods, not gold, silver or hard currency, as the system of exchange implies. Instead, exports should be made for gold, silver or hard currency. Special considerations allow for free internal technology transfer.