Question

1. What lessons does mercantilism hold for the 21st Century?

Answer 1

Mercantilism of 21 th century:

Positive :1) liberalism and globalisation of world Trade with emergence of institution like wto and rationalization of subsidy tarriff and barrier free trade.

2) trade agreements emergence Like bilateral multilateral tarde like : nafta, safta, rcep etc.

3) e-commerce trade emergence with emerging technologies

4)trade in services or BPO, KPO industry consultancy services etc.

5) trading of ip address , intellectual property rights etc are some new dimension of trade .

Negative

1) protectionism policy to do minimum import and maximum export to reduce trade deficit

2) trade imperialism like by China by dumping of cheaper products and take advanvatage by using bad practice of currency manipulation.

3)unfair and undue subsidy which are trade distorting for emerging or LDC countries.

4) antidumping, countervailing duty ,tarriff and non tarriff barrier etc.

5) illegal trade of conflict diamond, gold and wildlife, drug trafficking etc.