The Republic of Argonia,owing to it's vast resources of arable land and fresh water,is an agrarian nation.It exports agricultural products and in turn imports products that it does not produce such as oil,machinery,computers,and electronic devices.The result is that it spends more on imports than what it gains from exports.Which of the following theories prohibits such international trade?

Question

Quizplus · Accepted Answer

Mercantilism theory promotes the idea of exporting more than importing, with the goal of accumulating wealth through a positive balance of trade. This theory would prohibit a nation like Argonia from trading in the way it currently does, as it would be seen as detrimental to the country's economic growth and stability.

The Republic of Argonia,owing to It's Vast Resources of Arable