Which of the following policies would NOT be consistent with the Mercantilist balance-Of-trade doctrine?
A) payment of high wages to labor
B) import duties on final products
C) export subsidies
D) prohibition of imports of manufactured goods

Question

Quizplus · Accepted Answer

Mercantilism favored policies that would increase exports and decrease imports, leading to a positive balance of trade. Paying high wages to labor would increase production costs, making exports more expensive and reducing competitiveness in international trade. B, C, and D are consistent with mercantilist policies as they all aim to increase exports and decrease imports. Import duties on final products and prohibition of imports of manufactured goods would reduce demand for foreign goods, while export subsidies would boost exports by providing financial incentives.

Which of the Following Policies Would NOT Be Consistent with the Mercantilist