What is Mercantilism?

What is Mercantilism?

• A. Urbanization as people move to the cities for jobs
• B. Mercantilism
• C. Complementary goods
• D. Outsourcing

Answer: (B)

Mercantilism is an economic theory and practice in which the state regulates the economy to build national wealth. It centers on accumulating gold and silver and achieving a favorable balance of trade—exporting more than is imported—often by protecting and promoting domestic industries and by using colonies as sources of raw materials. Governments supported merchants, imposed tariffs, and tightly controlled trade to benefit the home country. The other options don’t fit: urbanization describes people moving to cities for jobs; complementary goods are items that are often used together; outsourcing means hiring external suppliers to perform work.

Mercantilism is an economic theory and practice in which the state regulates the economy to build national wealth. It centers on accumulating gold and silver and achieving a favorable balance of trade—exporting more than is imported—often by protecting and promoting domestic industries and by using colonies as sources of raw materials. Governments supported merchants, imposed tariffs, and tightly controlled trade to benefit the home country.

The other options don’t fit: urbanization describes people moving to cities for jobs; complementary goods are items that are often used together; outsourcing means hiring external suppliers to perform work.