Question

Considered to be the first theory of international trade, ______________ principal assertion was that gold and silver were the mainstays of national wealth and essential to vigorous commerce. a. Collectivism's. b. Mercantilism's. c. Capitalism's. d. Economic conservatism's.

Answer 1

Answer:

B. Mercantilism's.

Explanation:

This form of trade was seen to be practiced by Great Britain within the 16th to the 18th century and it is explained to be a trade pattern where the a country uses its economy to built its power to be stronger and this is particularly done at the expense of other countries. This model is seen to encourage exports to other economies while imports are been highly restricted. In as much as this was been a pattern for the Europeans, other factors were been seen to happen in a bid to practise this model well which includes:

i). Tariff barriers, quotas or non-tariff barriers.

ii). Secretion and storage of foreign currency reserves, plus gold and silver reserves.

iii). National investments in research and development to maximise the efficiency and capacity of the domestic industry and many more only to mention but few.