The mercantilism policy failed to generate gains from trade for countries that adopted it because of _____
A) increases in consumer spending.
B) high levels of federal debt.
C) supply-side shocks from oil-exporting countries.
D) runaway inflation in the United States.
E) retaliations from other countries.

Question

Quizplus · Accepted Answer

The mercantilism policy focused on maximizing exports and minimizing imports by imposing tariffs and other trade barriers. However, this led to retaliation from other countries with their own trade barriers, resulting in reduced foreign trade and shrinking gains from trade. Therefore, the policy failed to generate gains from trade for countries that adopted it.

The Mercantilism Policy Failed to Generate Gains from Trade for Countries