While mercantilism has largely been replaced by more modern economic theories such as capitalism and free

trade, certain aspects of mercantilist thought still have relevance in the contemporary world:

1. Trade Policies:
 Mercantilism advocated for policies aimed at achieving a trade surplus, where exports exceed imports. In the
contemporary world, many countries still pursue trade policies to maintain or achieve trade surpluses, viewing it
as a sign of economic strength. Protectionist measures like tariffs, quotas, and subsidies are sometimes employed
to protect domestic industries and promote exports.
2. Industrial Policy:
 Mercantilism emphasized government intervention in the economy to promote domestic industries and
manufacturing. Similarly, in the contemporary world, governments often intervene through industrial policies to
support strategic sectors, promote innovation, and foster economic growth.
3. Geopolitical Considerations:
 Mercantilism was closely tied to geopolitical ambitions, with nations competing for dominance through economic
means. In the contemporary world, economic power remains intertwined with geopolitical influence, with
countries vying for economic supremacy through trade agreements, investment, and alliances.
4. National Security Concerns:
 Mercantilism viewed economic strength as essential for national security. In the contemporary world, economic
considerations continue to be integral to national security strategies, with countries safeguarding critical
industries, technologies, and supply chains to protect against external threats.
5. Strategic Trade Policies:
 Mercantilism promoted strategic trade policies aimed at gaining an advantage in international markets. Similarly,
contemporary countries may engage in strategic trade policies, such as subsidies for strategic industries or export
promotion initiatives, to enhance their competitiveness in global trade.
6. Critique of Free Trade:
 Mercantilism challenged the notion of unrestricted free trade, emphasizing the role of government intervention to
protect domestic industries and promote national interests. In the contemporary world, debates over free trade
versus protectionism persist, with some arguing for greater government intervention to address issues like income
inequality, job displacement, and national security concerns.

While mercantilism as a comprehensive economic theory has largely been supplanted by more modern
approaches, its emphasis on certain themes such as trade policy, industrial strategy, and geopolitical competition
continues to have relevance in shaping economic policies and strategies in the contemporary world.