Asked by salvador borja on Jul 21, 2024
Verified
Which of the following is a similarity between mercantilism and neo-mercantilism?
A) Both favor a positive balance of trade.
B) Both oppose protectionist actions in trade.
C) Both focus on rapid economic development.
D) Both focus on military development.
Neo-Mercantilism
A trade theory which suggests that trade generates wealth for a country with a trade surplus, with emphasis on rapid economic development.
Positive Balance
A financial situation where assets exceed liabilities, indicating a surplus.
Protectionist Actions
Measures taken by a government to protect its domestic industries from foreign competition by imposing tariffs or quotas.
- Discern between the tenets of mercantilism and neo-mercantilism and their effects on the formulation of trade policies.
Verified Answer
MC
Michaela ChengJul 24, 2024
Final Answer :
A
Explanation :
Mercantilism and neo-mercantilism both advocate for a country to achieve a positive balance of trade, where exports exceed imports, as a means to accumulate wealth and economic power.
Learning Objectives
- Discern between the tenets of mercantilism and neo-mercantilism and their effects on the formulation of trade policies.