The government of Azcora, a nation that existed in the 1500s, had a trade policy wherein imports were taxed at higher rates than exports. At times, imports into the nation were restricted altogether. The nation sold most of its finished good to the numerous colonies it owned. A large portion of the profits that were accumulated from trading activities was used to strengthen the nation's military forces. In this scenario, which of the following theories of trade does the trade policy of Azcora reflect?

Question

Quizplus · Accepted Answer

The trade policy of Azcora reflects Mercantilism, which is characterized by high tariffs on imports, promoting exports, and using trade surpluses to strengthen a nation's military and infrastructure.

The Government of Azcora, a Nation That Existed in the 1500s