I usually stay in Mercantilism for the first years as America, because it's helpful to generate one or two great engineers for your wonders and England is blockading your ports anyway.
Prussia, because you have the 'settle Great People' goal. And in my case exploring beyond my unfriendly neighbours (Spain superpower of southern Europe) is sometimes less of a priority than rushing to polish off a few neighbours that I've been hungrily looking at (puns intentional).
It's probably not as useful as it should be, especially since the main competitors are Forced Labor and Free Market, which seem to be preferable from a production and commerce point of view, respectively.
I think trade in general needs a few tweaks so that it is not such no-brainer.
I should mention that I intend to redesign/rebalance/rewhatever the civic system once again after the next release, where I can give more attention to this problem.
Mercantilism: +1 free specialist per city; no foreign trade routes and oversea trade routes; trade route +100% base commerce
It will be helpful for scenerio 1700AD, there're a lot of countries adapt Mercantilism at the very beginning, a little buff of it will help countries such as Austria a lot.
It is very useful for colonial civs. +1 Free Engineer in your colonies can get them up and running that much faster.
With Sistine Chapel it's even better. I'd say essential if you wish to win Domination victories as England or Russia in the 1500s.
Edit: Also, given the ridiculous way in which Economic Stability is calculated, you want to slow down your economy early on as much as possible anyway. Mercantilism is perfect for that purpose - it hurts your tech rate a bit (very little if you're also running Representation) yes, but it hurts other civs' tech rate more since your cities are larger meaning your trade is more valuable to them than their trade is to you.
Mercantilism was all about keeping raw resources extracted within your territory from being exported, and developing manufacturing in your urban centers to process those resources. So, perhaps mercantilism could add a +X hammer / +X commerce bonus in your Y largest cities for every resource consumed by TC, textile, and mining corporations. This should make mercantilism peak around when it would historically as modern corporations come into vogue yet older corporations are still going strong.
Mercantile economies would not allow imports unless absolutely necessary, so I would also add a prohibition on importation of non-strategic resources, and any resource beyond the first. This shouldn't effect vassal though.
Finally, mercantilism should not inhibit the slave trade in any way. As it is you cannot enslave additional slaves under mercantilism and this does not seem appropriate as mercantilism in many ways facilitated the slave trade.
I've used it for Iran and the Mughals. Their final culture goals are very difficult to achieve on Emperor, and the extra specialist can make a massive difference.
With Iran I usually research Drama then Banking and switch to City States and Mercantilism. That way I essentially run two artist for free (one free plus one citizen generating two food) in each city. Add Scholasticism and you have a decent chance of getting enough GAs to win.
With Mughals you don't need City States for food (and don't want it for stability!), but the ability to run a free extra artist in all cities for a long period of time is vital for the culture goal, particularly in smaller cities without food resources. The main challenge is timing it to ensure you will reach the necessary techs for the wonders in time and without being beaten.
Tried using it once for Italy, but I managed to get the necessary GAs without needing the extra specialist. I guess it might help for France for the culture goal, although you have more time for that one, and can usually get the wonders to do it.
If you have Vassals who would provide good trade routes (The Inca is perfect for this), you will still get the trade routes with Mercantilism (along with all the foreign trade bonuses).
Mercantilism might be more widely used (and useful) if it became available with Guilds instead of Banking. Whilst that would arguably be ahistorically early, it would be in line with the development of mercanitilist policies as a result of pressure from guilds of merchants who controlled much of the trade.
It would make it much more viable for countries like Iran and the Mughals, who need GP but don't start with Banking, and others like France, Italy and the HRE (if the GA UHV is implemented), who might use Mercantilism for GPs in the early period.
I used it in a game as Kongo where my economy was already growing without trade from anyone. I haven't changed my civics for a while, so I thought I might as well choose Mercantilism as it fits my priorities (Of course, I really wasn't going for a UHV in this game).
Though I do believe free market or forced labour has much more potential.
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