International Trade Questions and Answers

Start Your Free Trial

Mercantilism is a bankrupt theory that has no place in the modern world.  Is this an accurate statement?

Expert Answers info

Alec Cranford eNotes educator | Certified Educator

calendarEducator since 2011

write5,847 answers

starTop subjects are Literature, History, and Social Sciences

Mercantilism itself is an outdated theory, one which had its origins in the establishment of European kingdoms as nation-states in the seventeenth century. Many of its assumptions were based on the existence of colonial empires, which would provide a mother state with the raw materials and wealth it needed to sustain manufacturing and other pursuits. In order to establish favorable trade balances and to promote domestic industry, nations set trade regulations, banning imports on certain goods and outlawing colonial trade with other nations. Obviously, this economic system became less appealing when nations lost their colonies, and economic theory largely shifted to favoring free trade. That said, some aspects of mercantilism have always persisted. Most nations establish some kind of trade restrictions intended to favor their own domestic economies. Many engage in clearly protectionist policies that are intended to benefit domestic manufacturing. President Donald Trump, for example, has...

(The entire section contains 4 answers and 678 words.)

Unlock This Answer Now


Michael Koren eNotes educator | Certified Educator

calendarEducator since 2015

write2,982 answers

starTop subjects are History, Law and Politics, and Social Sciences

check Approved by eNotes Editorial

Tamara K. H. eNotes educator | Certified Educator

calendarEducator since 2010

write3,619 answers

starTop subjects are Literature, History, and Social Sciences





pohnpei397 eNotes educator | Certified Educator

calendarEducator since 2009

write35,413 answers

starTop subjects are History, Literature, and Social Sciences

check Approved by eNotes Editorial