What theory holds that a nation’s power depends on expanding its trade?

Mercantilism

Explanation:

Mercantilism was the dominant economic system embraced by the Europeans between the 16th century to the 18th century. The system and theory believed that the wealth in the world was limited so it was in a nation's best interest to accumulate as much of this wealth as it could.

To do so therefore, the nation would have to expand its trade which meant to them that they had to export much more than they exported. They imposed tariffs on imports and colonized areas like the Americas with the goal being to sell their goods to these colonies.

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