Which of the following asserts that countries should simultaneously encourage exports and discourage imports?

Which of the following asserts that countries should simultaneously encourage exports and discourage imports?

Heckscher-Ohlin theory

What encourage exports and discourage imports?

FOREIGN TRADE POLICIES: Policies enacted by the government sector of a domestic economy to discourage imports from, and encourage exports to, the foreign sector. Tariffs and import quotas are designed to discourage imports and export subsidies are designed to encourage exports.

Why did mercantilists encourage exports and discourage imports?

The government protected its merchants—and kept foreign ones out—through trade barriers, regulations, and subsidies to domestic industries in order to maximize exports from and minimize imports to the realm. The goal of mercantilism was to run trade surpluses to benefit the government.

What did mercantilism focus?

Mercantilism was an economic system of trade that spanned from the 16th century to the 18th century. Mercantilism was based on the idea that a nation’s wealth and power were best served by increasing exports and so involved increasing trade.

Do countries still use mercantilism?

While China ranks as the most mercantilist nation, others such as India, Indonesia, and Russia have also engaged in innovation mercantilist practices, placing them in the report’s “moderate-high” category.

What impact did Adam Smith have on economics?

Smith is also known for creating the concept of gross domestic product (GDP) and for his theory of compensating wage differentials. 2 According to this theory, dangerous or undesirable jobs tend to pay higher wages as a way of attracting workers to these positions.

Why is the wealth of nations so important?

“The Wealth of Nations” is a seminal book that represents the birth of free-market economics, but it’s not without faults. It lacks proper explanations for pricing or a theory of value and Smith failed to see the importance of the entrepreneur in breaking up inefficiencies and creating new markets.