How did Frederick II’s mercantilist policies try to increase Prussian trade and manufacturing?

Frederick II’s economic policies were rooted in the mercantilist tradition, which prioritized keeping money within the country and increasing its inflow. To achieve these goals, he implemented several strategies:1

• Trade Restrictions: He sought to minimize the import of foreign manufactured goods, including an order in 1747 that prohibited individuals from taking more than 300 thalers in specie out of his territories.1
• Support for Domestic Industry: Frederick provided privileges and direct financial grants to domestic producers to encourage manufacturing. He specifically invested heavily in developing a silk industry and porcelain production, though these efforts often yielded disappointing or costly results.1
• Institutional Development: He established government-backed entities such as the Maritime Trading Company (Seehandlung) in 1772 to foster overseas trade and the Royal Bank of Berlin in 1765.1
• Economic Stimulation: The state encouraged economic growth by creating a large market for arms and woolen cloth through the military, and by attracting over 300,000 immigrants to settle on waste or depopulated lands to recover from the Seven Years’ War.1