Mercantilists would object to
A. free trade.
B. the accumulation of gold and silver.
C. taxing imports.
D. stimulating exports.
Please explain why the answer is A
Answer
The policy of Mercantilist intends to boost productive activity inside the national territories by allowing monopolistic privileges, tax exemptions, state subsidies, encouragement of the arrival of skilled workers etc. according to the Mercantilist free trade leads to the competition between domestic firms and international firms. According to them, economies should try to improve the prosperity of the nation by restricting imports and boosting exports. They thought free trade would lead to greater imports which will decrease the wealth of nation.
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