Question

Identify a local/global problem or a positive aspect in current societies that might be caused by an economic policy that is based on an economic concept that was originally identified by the Mercantilist School of Thought.

Your answer needs to provide at least two paragraphs.
The first paragraph discusses the local/global problem or a positive aspect in current societies.
The second paragraph explains how the concept that you identified is causing the problem or the positive aspect.

Answer all the questions in well developed paragraphs. The paragraphs should be at least five or six sentences long, and they should clearly include a topic sentence.

Answer 1

The Mercantilists do not advocate the free trade instead, they favor the restrictions on the import and seek to raise the level of export. In the present time, the Economy is facing the retreat from globalization. Now, more or less, all countries are going for the restrictions on the import. The USA, the largest market economy is heading towards the restrictions based trading activities. The president Trump administration has imposed the myriads of restrictions on the cheaper import from china and elsewhere.

Such Mercantilists steps would affect the trade adversely, such restrictions can cause the rise in the economic prosperity over the short run but over the long run, there would be negative impcts on the growth and prosperity. The consumer surplus would fall due to the rise in the price level as the cheaper import will be restricted under the mercantilists. Further, the producers would also find the cost of production rising, thus their profits margin would also be adversely affected.