Question

True or false and WHY? What Adam Smith detested about mercantilism was its focus on the founding and defense of the nation state.

True or false and WHY? Adam Smith, between the 1759 publication of The Theory of Moral Sentiments and the 1776 publication of An Inquiry Into the Nature and Causes of the Wealth of Nations, changed his mind about how the commercial world works.

The following statement by the chairman of General Motors:   “What’s good for GM is good for the economy.” is sometimes cited as an example of Smith’s reasoning of the invisible hand. True or false and WHY?

Answer 1

Answer 1. True.

Adan Smith was always right. What he said still holds about the nation states.

Actually,Mercantilism is relating on the idea that strong nation-states had the opportunity to create a world economy by using a state's military power to ensure local markets and supply sources were protected.

It is based on the knowledge that a nation’s wealth and power were in best health when there is an increase in exports, which in turn leads to the increasing collection of precious metals like gold and silver.

The base of mercantilism made it sure that it will eventually fail since it because it is impossible for every country or nation-state to have a surplus of exports, with many needing increased imports to fuel growth.