Question

How is the European Union is a mercantilist organization? what aspects makes them so.

Answer 1

The Mercantilists argue that government must follow the policy where it promotes the export and reduces the import. The trade surplus is the prime objective of the Mercantilists. The trade surplus occurs when the net export rises in the economy.

The EU is an organization, which is seeking to reduce the trade barriers among the member countries and there are common trade barriers against the non-member countries. Such actions by the EU are promoting the trade within the geographical area which comprises the member countries. In other words, The EU does not recommend free trade policies. thus EU policies resemble the Mercantilists policies.