Question

Salcia is a country that depends heavily on domestic products. The Salcian government decides on the products that can be imported and ensures that any product that can be produced at home is not imported. A major part of Salcia's trade is concentrated on exporting agricultural produce and textiles. Which of the following influences Salcia's approach to international trade?
Group of answer choices:
A) Leontief's paradox
B) Product life-cycle theory
C) Neo-Ricardian trade theory
D) Mercantilism
E) New trade theory

Answer 1

Answer:

D) Mercantilism

Explanation:

Based on the information provided within the question it can be said that Salcia's approach to international trade is being influenced by Mercantilism. This term refers to a policy that was created in order to maximize exports of a nation while at the same time minimizing the imports. This is what Salcia is trying to accomplish by not importing anything that they can make at home.

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