Question

According to adam smith, why were mercantilist policies that limited trade unwise?

Answer 1

According to Adam Smith, mercantilist policies that limited trade prevented the expansion of trade with other countries.

Smith considered that government intervention was no good in the economics of a country. He said that a free trade market was what a country needs. Otherwise, mercantilist policies limit trade and don’t allow its expansion abroad. Protectionism limited production and was a way to promote monopolies. If this happened, competition suffered.

Smith proposed that in order to achieve permanent economic growth with its social benefits in society, the government did not need to maintain economic privileges. He totally supported the free market.

Answer 2

Answer: Because countries could be most productive by focusing on making certain goods and importing other items

Explanation: