discourage imports.
Under a mercantile system, according to Smith, economic growth is achieved by trade-offs from one sector of the economy to another, trade agreements in which one country has a net gain of currency or gold, or by war. It was this system that gave rise to British law controlling currency and economic exchange both in England proper and its various colonies. The goal of these regulations were to control the wealth of the country and to eliminate activities that decreased wealth or were otherwise detrimental to the public welfare.
Mercantilism gave rise to many and complex restrictions on trade and commerce throughout Western Europe, and affected trade throughout the world. English law, for example, provided incentives to manufacturers and individuals in order to encourage them to export certain commodities. Laws favored exporting labor intensive goods and immigration of skilled labor was prohibited to protect British jobs. Import trade was permitted only when there was a reciprocal agreement wit
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