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Alenkasestr [34]
2 years ago
13

The _____ theory is based on the assumption that the wealth of the world is fixed.

Social Studies
1 answer:
Aneli [31]2 years ago
6 0

The <u> mercantilism </u>theory is based on the assumption that the wealth of the world is fixed.

It was first published as An Inquiry into the Nature and Causes of the Wealth of Nations, more generally known as The Wealth of Nations. The book was written by BY Adam Smith, a Scottish moral philosopher by profession, to explain the industrialized capitalism system.

According to mercantilism, wealth was set and limited. The only way to succeed was to stockpile gold and impose tariffs on imports.

This theory suggests that nations should sell their products to other nations while making no purchases in return. Predictably, nations entered into cycles of retaliatory tariffs that stifled global trade.

To learn more about mercantilism  click here:

brainly.com/question/909450

#SPJ4

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