Question

(A)

States in the mercantilist period

	a.	emphasized industrialization and agricultural exports as a means of gaining wealth.
	b.	viewed free trade as serving their interests.
	c.	repealed the corn laws and increased their technology exports
	d.	helped establish territorial unification and state authority

(B)

Its advocates supported extensive economic liberalization policies such as privatization, fiscal austerity, deregulation, free trade, and reductions in government spending in order to enhance the role of the private sector in the economy.

	a.	Socialism
	b.	Neoliberalism
	c.	Capitalism
	d.	Laissez- faire

Answer 1

A. The correct option is (a) emphasized industrailization and agricultural exports as a means of gaining wealth.

Mercantilists emphasized on the philosophy of beggar thy neighbour. It means that they emphasized that the country should export in order to accumulate wealth and gold. However, it should not import from other countries as it would not be fruitful for the economy to lose precious gold in imports.

Also, mercantilists do not believe in free trade.

B. The correct answer is (b) neoliberalism. Neoliberals advocated this to the economies after the collapse of USSR in 1991 in order to develop the underdeveloped economies. This development was undertaken by the institutes advocating neo liberal policies such as world bank and IMF.