- Mercantilism Theory
  - Definition of Mercantilism
    - Economic doctrine seeking national power
    - Focus on accumulating precious metals
      - Gold and silver equal national wealth
      - Exporting maximizes acquisition of precious metals
      - Importing minimized to protect currency and industries
  - Historical Background
    - Emerged during the fall of feudalism and rise of capitalism
    - Two stages of development
      - 15th-16th century: Direct government intervention
      - 17th-18th century: Rules of international trade emphasized
    - Representatives of mercantilism
      - Early stage: Advisers to British Queen
      - Late stage: Thomas More, Adam Smith
        - Criticism of mercantilism in "The Wealth of Nations"
  - Case Studies
    - Case 1: Chinese Toys in European Market
      - China dominated over 80% of EU toy market
      - EU stopped imports citing regulation violations
      - Protection of local enterprises and savings
    - Case 2: Japan's Rice Self-Sufficiency
      - Government strategy to achieve self-supply
        - Imported rice initially to change public perception
        - Passed laws to ban foreign rice imports
        - Invested in agricultural technology
      - Adoption of high-tech farming methods
  - Modern Implications of Mercantilism
    - Mercantilism still exists in modern economies
      - Public support for free trade but secret protectionism
    - Recommendations for China
      - Protect budding industries from foreign competition
      - Ensure comprehensive economic development