Mercantilism
A)reduces trade by enhancing protectionism.
B)increases internal trade within a region by restricting imports from the outside.
C)maintains a sense of security in trade by offering free exchanges of goods.
D)all of the above.

Question

Quizplus · Accepted Answer

Mercantilism is an economic theory that suggests a country should increase its wealth and power by exporting more and importing less. It achieves this by restricting imports from other countries through protectionist measures such as tariffs, quotas, and subsidies. This increases internal trade within a region as people are forced to buy domestically produced goods instead of cheaper imports. However, it reduces overall trade and can lead to international conflicts over trade policies. The concept of offering free exchanges of goods to maintain security in trade is more in line with free trade theories.