Which statement is NOT correct regarding the assumptions of mercantilism?

The statement that a nation should try to increase its imports is not correct in the context of mercantilism. Mercantilism is an economic theory that emphasizes the importance of maximizing exports and minimizing imports to achieve a favorable balance of trade. The primary goal under mercantilism is to accumulate wealth, particularly in the form of precious metals like gold and silver, which is viewed as essential for national power and security.

In mercantilist thinking, a nation prospers when it exports more than it imports, often resulting in trade surpluses. Therefore, advocating for increased imports contradicts the mercantilist principle, which prioritizes the generation of wealth through exportation. Mercy translates trade into a means of national strength, promoting the idea that colonies exist to benefit the mother country by providing raw materials and markets while limiting imports from other nations. The focus thus remains on fostering domestic production and creating a self-sufficient economy while ensuring that value is extracted from colonial resources.