Question

The U.S. and China continue to spar over sociocultural issues, such as human rights, and economic and financial issues, such as the value of the Chinese yuan against the U.S. dollar. U.S. diplomats assert that these differences continue to bolster China's favorable balance of trade and increase the U.S. trade deficit. The trade protectionist policy exhibited by the Chinese is similar to an economic policy known as ____________ that was followed during the seventeenth and eighteenth centuries. This policy resulted in a flow of money to the country that sold the most globally.

Answer 1

The trade protectionist policy exhibited by the Chinese is similar to an economic policy known as mercantilism that was followed during the seventeenth and eighteenth centuries.

Explanation:

Mercantilism is a global economic policy aimed at increasing a nation's exports and reducing its imports. These measures seek to slash a potential shortfall in the current account or create a surplus in the current account.

The England Navigation Act of 1651, forbade foreign ships engaging in maritime trade, is an example of mercantilism.

• Both colonial exports to Europe were first shipped to England and then to Germany.
• India was constrained by internal imports from the British Empire and compelled to import salt from the United Kingdom. Protests at the "Salt Tax Revolt" led by Gandhi contributed to this salt levy.
• In the 17th century, France introduced a regulated economy with stringent fiscal and labor market regulations.